The 5G equipment is on display at the booth of the Chinese telecom company ZTE at the Libya International Telecommunications and Information Technology Exhibition in Tripoli, Libya, on Nov. 14, 2022. More than 200 companies in the Libyan communications industry participated in the four-day event, which aims to promote high-end technical exchanges in the Libyan communications industry and play a key role in Libya's future network development, according to its organizer. Photo: Xinhua

If Germany, as reported by media, moves to prohibit its telecom operators from using the components made by China's Huawei and ZTE in the 5G mobile networks, it could face massive economic costs, a Chinese industry expert said on Tuesday. 

Germany's government is reportedly planning to forbid telecom operators from using certain components from Chinese firms Huawei and ZTE in its 5G networks, Reuters reported, citing German paper Zeit Online. The ban could include components already built into the networks, according to Reuters.  

It's unclear if the report is accurate or not, but if the German government were to impose such a ban, it could result in huge costs that would be difficult for local operators to manage, according to Xiang Ligang, director-general of the Beijing-based Information Consumption Alliance.

Germany would have to rebuild its mobile network, which may cost several billion euros, Xiang told the Global Times on Tuesday, adding it may cause an additional financial burden as the German economy is currently facing multiple headwinds.

German telecom operators actually become more dependent on Huawei for its 5G radio access network equipment (RAN) than for its 4G network, with Huawei products accounting for 59 percent of Germany's 5G RAN, compared with 57 percent in its 4G networks, according to a Reuters report, citing a survey by telecommunications consultancy Strand Consult.

According to Xiang, it will be difficult for local operators in Germany to find high-quality, cost-effective replacements for Chinese high-quality products, and whether the government would provide targeted subsidies is unknown as the country is handling multiple economic challenges. 

According to the Reuters report, critics of Huawei and ZTE assert that the companies could be a "risk" for the country's essential infrastructure. 

Xiang noted that some Western countries, agitated by the US government, are also hyping the "spying" conspiracy and move to give up Chinese telecom equipment, which is totally groundless. 

These countries will have to spend heavily to find any replacements, Xiang said.

Germany passed an IT security law in 2021, which set high hurdles for makers of telecommunications equipment for next-generation networks, but stopped short of banning Huawei and ZTE as some other countries have done. 

Global Times