ZTE dips 3pc on fears of German ban

ZTE's (0763) shares in Hong Kong dipped 3.14 percent to HK$23.1 apiece yesterday, after Germany reportedly plans to ban telecoms operators from using certain components made by Chinese companies Huawei and ZTE in 5G networks.

The German ban could include components already built into the networks, requiring operators to remove and replace them, German media had reported on Monday, citing sources.

A spokesperson for the interior ministry confirmed that the German government, which is in the midst of a broader re-evaluation of its relationship with top trade partner China, was carrying out a general review of telecoms tech suppliers.

"The main change is that these strict checks for potential security risks now also apply to the existing components in telecommunications networks," the spokesperson said, adding that operators would not be compensated for parts that needed to be ripped out of the network and replaced.