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The fresh scrutiny for supply chain security in the EU\u2019s largest economy \u2014 a manufacturing powerhouse with a complex relationship with China \u2014 comes at a time when the European Union is considering how best to tackle cyber risks in supply chains dominated by Chinese firms.<\/p>\n
Governments are looking beyond the telecom sector, pushing for action in areas such as solar power<\/a> and connected cars<\/a>. European cybersecurity officials are finalizing an ICT Supply Chain Toolbox<\/a> to help governments mitigate the risks, and the European Commission is preparing an overhaul of its Cybersecurity Act to address the issue, expected in January.<\/p>\n The German legislation implements the EU\u2019s NIS2 Directive, a critical infrastructure cybersecurity law. The Bundesrat, Germany\u2019s upper legislative chamber, still has to sign off on the bill, which is expected next Friday.<\/p>\n The key question is whether Germany is willing to use its powers, said Noah Barkin, a senior advisor at Rhodium Group, a think tank. On telecoms, \u201cthis helps lay the groundwork for pushing Huawei out of the 5G network, but it doesn\u2019t guarantee that the political will will be there to take that decision,\u201d he said.\u00a0<\/p>\n The Interior Ministry could already block telecom operators from using particular components under an existing German IT security law. The law’s 2021 revision was widely seen as an attempt<\/a> to get Chinese firms like\u00a0Huawei\u00a0and ZTE out of telecom network due to fears of cybersecurity and security risks.\u00a0The Interior Ministry\u00a0intervened<\/a>\u00a0in 2024, but it has never formally blocked the use of specific components under that law.<\/p>\n For its new cyber law, the government originally proposed to extend the measures applying to the telecom industry to the electricity sector as well. But parliament’s version now applies to all critical sectors, which under the EU\u2019s NIS2 law includes areas such as transport, health care and digital infrastructure.\u00a0<\/p>\n<\/div>\n