Deutsche Telekom hedges against US sanctions

Hamburg, Brussels, Washington The relationship between Deutsche Telekom and Chinese group Huawei may be closer than known. According to Handelsblatt’s information, the two companies made an agreement in 2019 that could have circumvented US sanctions. The signed contract is available to Handelsblatt.

The goal of the agreement was to “prevent potential supply risks with respect to Huawei products that contain components from the United States,” the contract says. Critical spare parts should be “stored and managed in Huawei’s European warehouses,” and individual Huawei devices should be handed over to Telekom as a precaution.

Securing a relationship with a technology supplier could be commercially beneficial for Telekom. It’s a political blowout for the group, as the federal government owns about 30 percent of the shares.