A debate is slowly unfolding in Germany on economic overreliance on China itself, as imports from China continue to increase and German exports to China continue to drop.
When it comes to security-sensitive investment, there should be little debate. Obviously, in those cases, restrictions could make sense. Yet, there seems to be little sense of urgency about this in Germany. For years, the U.S. has been pressuring the German government to exclude Chinese telecoms manufacturer Huawei from its 5G and 6G networks, but Germany keeps dragging its feet here, as it is only intending to impose gradual restrictions.
For years, security agencies have been warning of potential espionage or hidden shutdown devices, alongside warnings there could be sabotage of Germany’s digital infrastructure in case of a conflict. Huawei has consistently denied these allegations, but the concerns stem from a Chinese security law that came into force in 2017, which obliges all organizations and citizens to cooperate with “national intelligence efforts.” At least, however, Germany seems to be planning to get its act together here.
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