Earlier in the week, German newspaper reported, citing sources, that Berlin intends to ban components manufactured by Huawei and ZTE used for the expansion of wireless coverage in the 5G mobile standard over security concerns.
"If reports are correct, the Chinese side is very concerned and extremely dissatisfied with a hasty decision made by the German governmental agency in charge with no factual support," the embassy said in a statement.
The diplomatic mission stated hat China is against Germany's generalization of the national security concept and expressed hope that Berlin would create a fair and non-discriminatory environment for Chinese businesses.
Huawei accounts for almost 60% of the equipment used in Germany's 5G networks, which is "making a positive contribution" to the expansion of telecommunications infrastructure in the country, according to the embassy.
German news outlet reported that the ban on the use of Chinese technology in critical infrastructure could affect the Deutsche Telekom, Vodafone, and Telefonica mobile operators, which have already used components from these Chinese companies when expanding their 5G networks, with the government not planning to cover the costs of re-equipment.
The topic of the participation of Chinese companies in the expansion of 5G networks in Germany has been stirring up controversy for several years now, as Berlin is worried that the Chinese government could gain access to critical German infrastructure.