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German proposal for Huawei curbs triggers telecom operator backlash

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On Thursday night, a spokesman for the Chinese Embassy in Germany expressed strong dissatisfaction and resolute opposition to Germany’s decision to exclude Huawei and ZTE telecom equipment from the 5G network, warning that the move will seriously undermine mutual trust between the two sides and also affect future cooperation between China and the EU in related fields.

Chinese experts who have evaluated the issue also said on Friday that Germany’s decision shows that it is under further pressure from the US and the EU, noting that excluding Chinese components from the 5G network will have a significant cost and hinder the country’s communications development.

In a preliminary agreement due to “security concerns”, the German government and the country’s telecoms operators have agreed in principle on steps to remove components made by Chinese companies from the country’s 5G mobile network over the next five years, Reuters reported on Thursday.

In response, the Chinese spokesperson said that Huawei, ZTE and other Chinese communications companies have long been operating in Germany in accordance with the law and have made a positive contribution to Germany’s digitalisation process.

The alleged cybersecurity risk is “nothing more than an excuse”, the spokesperson said, adding that it is essentially the behaviour of individual countries to pressure their competitors in order to maintain their own scientific and technological hegemony. In fact, no country has yet provided conclusive evidence of the existence of safety risks in the equipment of Chinese companies, the spokesperson added.

“The German side’s announcement of the decision during the NATO summit in Washington has caused China to seriously question the independence of Berlin’s decision-making,” the spokesman said.

The Chinese official said Germany’s move was “blatant political discrimination” that seriously undermined mutual trust between the two sides and would also affect future China-EU cooperation in related areas.

“Germany’s move can be seen as politicising economic cooperation, as it is now facing more pressure from the US and the EU,” Sun Yanhong, a senior research fellow at the Institute of European Studies of the Chinese Academy of Social Sciences, told the Global Times on Friday.

Sun noted that Germany’s digital infrastructure is relatively backward, while Huawei and ZTE’s equipment is leading in terms of technology, integrated solutions and low-cost products, which will be a “loss” for Germany.

“The cost of the transition is expected to be significant, which will limit the development of all areas of the country’s digital economy, including smart driving, smart healthcare and production automation factories,” the expert warned.

Meanwhile, the Chinese embassy spokesperson stressed that Beijing will take necessary measures to protect the legitimate interests of Chinese companies.

Chinese Foreign Ministry spokesman Lin Jian also said at a press conference on Thursday that China hopes Germany will respect facts and make reasonable decisions, and urges the European country to create a fair market environment for enterprises from all countries, including Chinese enterprises.

Diplomacy

Armenia signals potential complete withdrawal from CSTO

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Armenian Deputy Foreign Minister Vahan Kostanyan announced that Yerevan might decide to withdraw entirely from the Collective Security Treaty Organization (CSTO) if member states fail to “demonstrate a clear political stance” regarding Azerbaijan’s actions. Kostanyan emphasized that Armenia is no longer making insinuations but is speaking very openly.

According to the Novosti-Armenia news agency, Kostanyan stated, “Ultimately, if our partners in the CSTO, including the Russian Federation, do not make the political statements that were mentioned several years ago after the aggression against the sovereign territory of the Republic of Armenia, then Armenia will make a final decision.”

The Deputy Minister also underscored that Armenia, as a sovereign state, will determine the right time for its next steps.

Membership was frozen

Relations between Armenia, Russia, and the CSTO deteriorated following the conflicts in Nagorno-Karabakh, after which Yerevan formally requested support from its allies.

Following this process, Prime Minister Nikol Pashinyan repeatedly criticized the CSTO for not assisting Yerevan.

Pashinyan described the organization as a “bubble alliance,” claiming it was “planning a war” against Armenia alongside Baku.

Last February, Prime Minister Pashinyan announced that Armenia had frozen its participation in the CSTO. By May, the Armenian Ministry of Foreign Affairs reported that the country would refuse to finance the organization’s activities.

Intelligence report points in the same direction

In January of this year, a public report released by the Armenian Foreign Intelligence Service stated that the country has no intention of returning to full participation in the CSTO in the near future.

The report noted, “We find it highly unlikely that the reasons that led to Armenia suspending its membership will change in 2025. Based on this situation, the organization’s prestige continues to be seriously questioned and has become a ’cause for reflection’ for other member countries.”

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BRICS internal trade volume hits the $1 trillion mark

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Kirill Dmitriev, Special Representative of the President of the Russian Federation and CEO of the Russian Direct Investment Fund (RDIF), announced that the internal trade volume among BRICS countries has reached $1 trillion.

In a statement on his Telegram channel, Dmitriev noted that surpassing this significant milestone confirms the strengthening of economic ties between member states and the bloc’s growing role in shaping the new global economic architecture.

He also emphasized that Russia continues to strengthen trade relations, particularly through the BRICS Business Council, in line with the directives of President Vladimir Putin.

BRICS’ share will continue to grow, Putin says

During a plenary session at the St. Petersburg International Economic Forum on June 20, Russian President Vladimir Putin recalled that at the beginning of the 21st century, BRICS countries accounted for only one-fifth of the global economy, whereas today this figure has reached 40%.

The Russian leader stated that this share will continue to grow, describing it as a “medical fact.” According to Putin, this growth will primarily be driven by the countries of the Global South.

In April, Maxim Oreshkin, Deputy Chief of Staff of the Presidential Administration of Russia, also said that the BRICS countries, operating on principles of consensus, have become a key force in the world economy.

BRICS expansion agenda

Initially composed of five countries—Brazil, Russia, India, China, and South Africa—BRICS expanded in 2024 with the inclusion of the United Arab Emirates (UAE), Iran, Ethiopia, and Egypt.

In January of this year, Indonesia became the bloc’s tenth full member.

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Xi Jinping to miss BRICS summit in Rio for the first time

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Chinese President Xi Jinping will not attend the upcoming BRICS summit in Rio de Janeiro next week.

According to multiple sources cited by the South China Morning Post on Tuesday, this marks the first time Xi will miss the gathering of leaders from major emerging economies.

Officials familiar with the matter stated that Beijing informed the Brazilian government of a scheduling conflict. Premier Li Qiang is expected to lead the Chinese delegation in Xi’s place, a similar arrangement to the 2023 G20 summit in India.

Chinese officials involved in the preparations suggested Xi’s absence is due to his two meetings with Brazilian President Luiz Inácio Lula da Silva within the past year. The first occurred during the G20 summit and a state visit to Brasília last November, while the second took place at the China-CELAC forum in Beijing this May.

Xi has never before missed a BRICS summit. In 2023, he was scheduled to deliver a speech at the meeting in South Africa but, at the last minute, sent Commerce Minister Wang Wentao instead. Beijing provided no official explanation for the change.

During the COVID-19 pandemic, Xi participated in BRICS meetings virtually, with Russia hosting in 2020 and China in 2021.

On Tuesday, the Brazilian Foreign Ministry told the Post it “would not comment on the internal deliberations of foreign delegations.” The Chinese embassy in Brazil did not immediately respond to requests for comment.

However, Chinese Foreign Ministry spokesman Guo Jiakun told the Brazilian newspaper Folha de S.Paulo, “information regarding participation in the summit will be shared at the appropriate time.” Guo added that China supports Brazil’s BRICS presidency and aims to “promote deeper cooperation” among member nations. “In a volatile and turbulent world, the BRICS countries are maintaining their strategic resolve and working together for global peace, stability, and development,” he said.

In Brasília, officials have not concealed their disappointment regarding Xi’s absence. A source informed the Post that Lula had traveled to Beijing in May as a “show of goodwill” and had hoped “the Chinese president would reciprocate the gesture by attending the Rio summit.”

There was also speculation that Lula’s invitation to Indian Prime Minister Narendra Modi for a state dinner after the BRICS summit may have influenced Beijing’s decision, as Xi might have been “perceived as a supporting actor” at the event.

Lula’s special adviser for international relations, Celso Amorim, met with Chinese Foreign Minister Wang Yi in Beijing, where he clearly expressed Brazil’s desire to host Xi. “I told them, ‘BRICS without China is not BRICS,'” Amorim stated, recalling that then-President Hu Jintao attended the first BRICS summit in Brazil despite a major earthquake in China at the time. “He only stayed for one day, but he came.”

Amorim emphasized the particular importance of Xi’s attendance in the current global context, citing the “US withdrawal from the Paris Agreement and the World Health Organization” as a “violation of international rules.”

Premier Li is expected to arrive in Brazil next weekend for the summit, which is scheduled for July 6 and 7 in Rio.

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