Berlin — German Chancellor Angela Merkel is facing a potential revolt in parliament by legislators seeking to override her China policy and effectively ban equipment supplier Huawei Technologies from the country’s fifth-generation (5G) wireless network.

A bill drafted by legislators in Merkel’s ruling coalition stipulates that German authorities be able to exclude “untrustworthy” 5G equipment vendors from “core as well as peripheral networks.” That goes beyond previous calls that sought to ban the Chinese firm from the more sensitive core network alone...

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