The Huawei logo is seen at its booth during the Mobile World Congress in Shanghai, China June 28, 2023. (Reuters)

Germany said Thursday it will phase out the use of components from Chinese telecom giants Huawei and ZTE in its 5G networks in the coming years due to national security concerns.

Parts from the firms will no longer be used in "core" 5G mobile networks by the end of 2026 at the latest, the interior ministry said. In 5G access and transmission infrastructure, the systems of the telecom firms must be replaced by the end of 2029. "We are protecting the central nervous systems of Germany as a business location -- and we are protecting the communication of citizens, companies and the state," said Interior Minister Nancy Faeser.

"We must reduce security risks and, unlike in the past, avoid one-sided dependencies."

The ministry said that 5G networks form part of Germany's "critical infrastructure" and are important for the functioning of sectors ranging from health to transport and energy.

China and Germany, the world's number two and number three economies respectively, have long had close economic ties.

But Berlin has been seeking to reduce its economic dependency on China, particularly since the war in Ukraine and subsequent energy crisis exposed an over-reliance on Russia.