The German government has reached an agreement with telecom providers to phase out components from Chinese companies Huawei and ZTE from its 5G network by 2029.

This decision, announced on Thursday, aims to protect Germany's critical digital infrastructure from fears of potential security risks associated with Chinese technology.

Interior Minister Nancy Faeser praised the deal as a "clear and strict agreement" that will safeguard "the central nervous system of Germany as a business location." She emphasised the need to "reduce security risks and, unlike in the past, avoid one-sided dependencies."

The ban will be implemented in two stages. By 2026, telecoms companies must remove Chinese equipment from the core 5G network, including data centres. The second phase requires the removal of Chinese components from the broader network, including radio antennas, by 2029.

This compromise follows a long-running dispute within the German government, balancing security concerns against economic considerations. Some officials had pushed for a faster timetable, with Konstantin von Notz, chair of the parliamentary control committee, criticising the five-year grace period as "an extremely long time" given recent security developments.

The decision comes amid mounting pressure from allies, particularly the United States, which has long warned about the risks of involving Chinese companies in critical infrastructure. However, telecoms providers have resisted swift action, citing high costs and potential service disruptions.

Huawei defended its position, stating, "There is still no comprehensible evidence or plausible scenarios that Huawei's technology would pose any kind of security risk." The company emphasised its long record as a "reliable supplier" in Germany.

The Chinese embassy in Germany warned that excluding Huawei would not be without consequences, calling it a "ruthless attempt" to suppress competition.

As Germany moves forward with this plan, it joins other countries like the UK in banning Chinese equipment from 5G networks. The implementation of such bans has proven challenging, with the UK extending its initial deadline for removing Chinese technology from its core network to the end of 2024.

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