In the United States' campaign against Chinese 5G dominance, Huawei has felt the heat the most. Now the USA has warned Germany that they plan to reduce intelligence sharing if Germany allows Huawei to build their planned 5G infrastructure.
According to the Wall Street Journal, it sounds more like an ultimatum from the US – get rid of Huawei, or watch intelligence sharing get cut. Reportedly, Germany relies heavily on US intelligence to fight terrorism. That being said, the threat of decreased collaboration is no laughing matter. Funnily enough, Germany doesn't appear to be swayed by the arguments made by the United States against Huawei, as they plan to allow Huawei to bid for the project.
Germany is starting the bidding for its 5G infrastructure project next week. Huawei is going to bid on the project, which is something that upsets US officials. The US feels that giving a Chinese company like Huawei the green light to construct and maintain 5G networks will give China's government an easy way into communication surveillance. Huawei said that wouldn't be the case, but, a CNBC report said different, stating that Huawei wouldn't have a choice in the matter. The Chinese government would be able to tap this rich data mine if it saw fit.
The US has banned the use of Huawei devices in government, and has urged its allies to forbid Huawei from building infrastructure in the communication and big data race to 5G. The struggles between Huawei and the US have been going on for years over security, sanctions violations, IT theft and wire fraud. The most recent battle has been the United States' process of extraditing Huawei CFO Wanzhou Meng for money laundering and fraud – part of violating US sanctions against doing business with Iran. On a larger scale, US intelligence warned against the use of Huawei devices in 2018, and the US government forbade giving government contracts to Huawei in a spending bill from 2018.
Huawei Fights Back
Huawei isn't taking these things lightly. They are suing the US government for prohibiting the use of its devices, saying there is no proof that there is a spy threat. They even took out an ad in the Wall Street Journal, telling everyone "don't believe everything you read". The US is, however, determined to keep Huawei out of the 5G race for security and/or economic reasons, the Trump presidency is trying to win the race against China, even though the US is way, way behind China when it comes to 5G.
What Germany Thinks
Some allies like New Zealand and Australia are behind the United States, barring Huawei from their 5G infrastructure projects. The UK say they are not concerned about the security risks from Huawei and China. Germany has gone on the record as saying that, since there is no evidence of cyber security risks, Huawei should be permitted to bid on the project in fairness under the law.