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Germany's Social Democratic Party (SPD) will decide on Tuesday whether to adopt a proposal that could ban Huawei [HWT. UL] from participating in the launch of 5g services, which will further strain the party's alliance with German conservative Chancellor Angela Merkel.
Merkel's left and right wing coalition government wants to strengthen technical certification and review of telecom equipment suppliers, but insists that no country or supplier should be excluded.
Ms Merkel's cautious approach faces criticism from members of her own party and its ruling partner, the Social Democratic Party. Critics say Ms Merkel's caution stems from concerns that China will retaliate against German companies that have invested heavily in China.
Last week, SPD and conservative lawmakers agreed to a plan that would make it more difficult for Huawei to participate in the construction of 5g mobile infrastructure in Germany.
The proposal, seen by Reuters, states that if countries "cannot rule out government influence, manipulation or espionage without constitutional oversight," then their suppliers "must be excluded from the network, whether core or peripheral.".
But after the government's opposition, members of the German Social Democratic Party decided to vote on the proposal on Tuesday.
Ralph brinkhaus, leader of the conservative parliamentary group, said on Monday that intensive discussions were under way to find a solution acceptable to all stakeholders.
All German telecom operators are Huawei's customers, who have warned that banning Huawei could delay the development of 5g networks.

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