Today, the Swedish court upheld an injunction prohibiting Huawei from selling 5G equipment in Sweden. Soon afterwards, Huawei issued a statement in response to express its regret and believed that this court decision was not the final one. It is studying further legal remedies and looking forward to dialogue with relevant Swedish parties to seek solutions. The editor believes that Huawei spares no effort to fight for related rights. In addition to not wanting to miss the Swedish market, it is more important to avoid destroying its hopes of a comeback in the European market and triggering a knock-on effect. Therefore, this matter must still be handled properly. The verdict has a knock-on effect, Ericsson is full of “survival desire” Crucially, the above-mentioned Swedish agency did not provide any facts and evidence of Huawei’s security issues during the public trial, and clearly described it when submitting documents to the court. There was no evidence that Huawei’s equipment and software had technical vulnerabilities. This is really a bit confusing, a bit out of nothing, and it feels like a thief shouts and catches the thief. In fact, this matter dates back to October last year when the Swedish Postal and Telecommunications Administration banned Huawei or ZTE from supplying 5G equipment to Swedish mobile companies, including participating in 5G spectrum auctions. The equipment that is still in use must be replaced by early 2025. In response, Huawei also filed an appeal. Obviously, the Swedish court rejected Huawei’s appeal this time and upheld the “Huawei 5G ban.” Therefore, the editor also believes that the decision of the Swiss side may cause a knock-on effect and have many subsequent effects. Previously, the attitudes of many European countries towards Huawei’s 5G need not be repeated. Romania is the latest country to actually ban Huawei from participating in the construction. However, because of the use of the Danish intelligence agency by the United States, the situation seems to be turning for the better. Italy’s recent reversal of its attitude shows signs of lifting the ban on Huawei, which may trigger other European countries to follow suit. Perhaps a country like Italy, which is a bit “sorrowful”, is very good at standing in teams and turning back. It will always lean on the winner’s side, and Sweden should learn more from it. After all, from the perspective of the country’s direct interests, rejecting Huawei will undoubtedly leave Sweden’s own 5G development behind. The UK has also suffered before, not only the lagging network construction, but this is still a continuous matter, to bear the additional cost increase in the next 10 years. It also has a negative impact on the political and economic aspects of the country. Generally speaking, under the political and diplomatic pressure of the United States, although European governments are reluctant, they have to bow their heads and prosecute themselves. They have to deal with between the two major powers and block Chinese companies from participating in 5G construction. From the perspective of corporate interests, there is no practical benefit at all. Huawei’s 5G is blocked out, and local Ericsson should logically be pleased. However, Ericsson had a high-profile support for Huawei. Obviously, Ericsson believes that the Chinese market is much more promising than the Swedish market, and it has shown a great desire to survive. After all, banning Huawei will greatly increase the negative impact of Swedish companies, including Ericsson. Although China is not the most important market for Ericsson, in the domestic 5G network bidding construction last year, Ericsson also showed signs of being marginalized, but at least about 10% of its revenue comes from China. For this reason, a month ago, Ericsson also issued a warning that its business in the 5G market in China is expected to shrink substantially. Looking forward to China’s “legitimate defense”, Catching a Duck on Shelves and Technological Bullying On the other hand, the outside world is also observing the response and actions of the Ministry of Commerce of China, especially whether it will offer a list of unreliable entities to counter it. The editor checked the relevant regulations and found that foreign entities included in the list of unreliable entities may be restricted or prohibited from engaging in China-related import and export activities, and their investment in China may be restricted or prohibited depending on the circumstances. After all, the Ministry of Commerce only announced the “Regulations on the List of Unreliable Entities” in September last year, and this seems to be the same. In order to deal with the irrationality and arrogance of the West, it is of course a legitimate defense. However, one trades another. After Huawei’s 5G equipment and technology are continuously suppressed by Europe and the United States, Nokia, Ericsson, and Samsung will naturally further erode the European market. Even second-tier 5G network equipment suppliers such as Samsung Electronics will be able to do so. Entering the European continent and signing a contract with British Vodafone is really trying to catch the ducks on the shelves. The naked economic and technological bullying in the West continues. Last Thursday, the U.S. Federal Communications Commission (FCC) unanimously voted to ban the approval of equipment from five Chinese companies in the U.S. communications network on the grounds of “national security threats.” The companies involved include Huawei, ZTE, and Hytera. , Hikvision and Dahua. The editor believes that the U.S. has become accustomed to constantly generalizing the concept of “national security” and abusing national power to suppress specific countries and companies without any evidence. This is also the United States once again openly denying the principles of market economy, freedom and democracy that it has always advertised. In any case, for Ericsson’s operations in China, regardless of whether it is countered by the Ministry of Commerce, it will ultimately pass the Chinese market and consumers. Relevant Swedish institutions should formulate objective, uniform, and verifiable cyber security standards based on basic facts. This is the perfect solution. (Editor in charge: Andy) Finish
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