Huawei is starting to suffer as the Trump administration steps up efforts to slam the door on access to Western components and markets in a widening feud with Beijing over technology and security. (Mark Schiefelbein/AP/CP)

Huawei is starting to suffer as the Trump administration steps up efforts to slam the door on access to Western components and markets in a widening feud with Beijing over technology and security. (Mark Schiefelbein/AP/CP)

Trump Is Still Trying to Pressure Merkel Into Banning Huawei

KEITH KRACH, UNDER SECRETARY FOR ECONOMIC GROWTH, ENERGY AND THE ENVIRONMENT

Source:  Bloomberg  Patrick Donahue

September 28, 2020

U.S. official received no guarantees Huawei would be shut out
China is a ‘parasite’ attached to Germany, undersecretary says

U.S. President Donald Trump’s administration is maintaining pressure on Chancellor Angela Merkel to exclude Huawei Technologies Co. from Germany’s fifth-generation wireless network, though a high-level American official received no guarantees the Chinese supplier would be shut out at meetings in Berlin last week.

A delegation led by U.S. Undersecretary of State Keith Krach held talks with German officials during a two-day visit to the German capital. Krach said he was encouraged by new security measures being discussed by Merkel’s government, but that it remains open whether Huawei will be barred from 5G in Europe’s biggest economy.

The U.S. official described Huawei as the “backbone of the Chinese communist party’s surveillance state” and said Germany is under particular threat from the government in Beijing. He called the communist party an “existential threat.”

“The parasite is attached to the prize, and that is Germany,” Krach told a group of reporters Friday in Berlin, adding that the U.S. has “respect” for whatever decisions Germany makes.

Merkel is holding the line against security hawks in her own government who agree with the U.S. risk assessment as her ruling coalition finalizes rules for Germany’s 5G network. A new set of regulations as part of a sprawling IT security law would tighten scrutiny over equipment vendors, giving cabinet members room to flag risks.

Merkel has refused to compromise on her core position that Germany mustn’t single out Huawei with a targeted ban. Although talks are ongoing, the measures on their own aren’t likely to amount to a de facto veto of Huawei by making the security demands too onerous, according to three people familiar with the discussions.

U.S. Secretary of State Michael Pompeo has repeatedly demanded that European governments exclude Huawei and get the Chinese supplier’s components “out of their system.”

Germany’s more open approach would leave it with looser rules than the U.K., which has imposed a full ban, and France, where President Emmanuel Macron’s government has devised rules making it riskier for operators to use Huawei 5G kit, without banning it outright.

Huawei has become a lightning rod for geopolitical tensions with China. In addition to pressure from the U.S., Merkel has faced resistance from German intelligence agencies, who say that the company’s ties to the Chinese communist party pose a risk to information security.