Germany has snubbed U.S. demands to ban Huawei from its 5G phone network.
On Monday (October 14) Berlin confirmed the final rules for its next-generation system.
No single equipment vendor is barred.
Though all suppliers will be subject to evaluation on technical and other grounds.
The move is a blow to Washington.
It has urged allies to exclude Huawei, saying its gear allows back-door access for Chinese spies.
Huawei denies all such allegations.
Baader Bank's Robert Halver says Germany was faced with a difficult decision:
(SOUNDBITE) (German) HEAD OF CAPITAL MARKET ANALYSIS AT BAADER BANK, ROBERT HALVER, SAYING:
"Germany is in a tough spot between America and China. It doesn't want to forfeit either side. If Ms. Merkel aligns with the Chinese on Huawei, Trump won't be happy. That will raise the danger of further tariffs against Europe once again."
5G networks will offer a massive increase in data speeds.
German network operators said banning Huawei would delay launching the service by years, and add billions of dollars in costs.