"Going with an untrusted supplier like Huawei or ZTE will have all sorts of ramifications for your national security and. since we are military allies with nearly all members of the European Union, on our national security as well", the official said.
Huawei, the global networks market leader with annual sales exceeding US$100 billion, faces worldwide scrutiny over its ties with the Chinese government and suspicion that Beijing could use its technology for spying. "We continue to work with all of those relevant bodies to answer all the questions that are being asked right now".
Other countries are carefully monitoring the Huawei situation, with its' chief financial officer Meng Wanzhou, who is the daughter of the company's founder, having been arrested in Canada a year ago at the request of the United States over alleged violations of Iran sanctions. Yet no supporting evidence has been made public.
The administration's desire to make a strong impression at MWC is so great that, at one point, Secretary of State Mike Pompeo planned to attend the event, according to the second industry source. It maintains that it is a privately owned company with no ties to the Chinese government. However, the Federal Network agency is working on a series of security measures, and the Federal Office for Information Security (BSI) will set up a certification and licensing system for products to use in the 5G network.
July's report identified what it called technical problems which limited security researchers' ability to check internal product codes and concerns about the security of third-party components from a USA supplier.
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Huawei has reportedly said it would take three to five years and a $2 billion investment to resolve the security issues found in a British report last year.
The supervisory panel also said that "technical issues" had been identified in Huawei's engineering processes, leading to "new risks in the United Kingdom telecommunications networks". "It is a complicated and involved process".
Allegedly, Huawei's 5G infrastructure equipment can come with backdoors, allowing the Chinese government to spy on communications of any country using Huawei's gear.
Italy has denied a report it will ban China's Huawei Technologies and ZTE Corp from playing a role in building its fifth-generation mobile phone network.
German Chancellor Angela Merkel said this week that "there are big discussions about Huawei" in her country.