China again threatens to ‘handle’ Ericsson if Sweden bans Huawei. According to the Global Times, affiliated to the People’s Daily of the Communist Party of China, whether Ericsson has a chance to participate in the next round of China’s massive 5G network construction plan has nothing to do with whether whether or not Stockholm will change its stance on Huawei. Previously, in October 2020, the Postal and Telecommunications Administration of Sweden (PTS) announced a ban on the use of equipment from Huawei and ZTE in the development of 5G networks in the country. This ban did not surprise observers because Sweden has repeatedly bluntly called China a threat to national security. According to the Global Times, Huawei has appealed the decision in a Swedish court and a ruling is expected in the coming weeks. In the event that the appeal is unsuccessful, China will close the door to Ericsson from supplying goods to China. Representatives for Ericsson and the Swedish Ministry of Foreign Trade declined to comment. Meanwhile, shares of Ericsson fell nearly 4% on May 11. After Swedish regulators banned Huawei in October last year, Chinese officials and state media outlets judged the decision unfair, saying Huawei poses no security risk. and Sweden is trying to protect the domestic telecommunications company Ericsson. They threatened to retaliate against Swedish companies doing business in China, including Ericsson and its largest shareholder, Investor AB, the investment company of the highly influential Wallenberg family in Sweden, which has shares mostly at a few large European companies. Earlier, Chinese media outlets reported that the country’s Ministry of Commerce was said to be considering export control measures to prevent Ericsson from sending products and components made in China abroad. The prospect of retaliation prompted Ericsson CEO Börje Ekholm to launch a lobbying campaign on Huawei’s behalf. He criticized Swedish politicians and solicited lawyers to help Huawei fight the Swedish ban. He said Ericsson gets only 1% of its revenue from Sweden while China is Ericsson’s second-biggest market after the US, contributing 8% of the company’s revenue. Currently, Ericsson is providing equipment and terminal services to China’s state-owned carriers including China Mobile, China Unicom and China Telecom, serving more than 350 million 5G mobile subscribers in China in total. CEO Ekholm even stated: “If the ban on Huawei remains, Ericsson will leave Sweden.”

Ericsson headquarters in Sweden. Photo: Telefonaktiebolaget LM Ericsson Chris Houghton, senior vice president of Ericsson and for markets in Northeast Asia, told reporters through a video call at an event in Beijing on April 22: “Confrontation and increasing polarization Increasing will not make the world any safer. ” Global efforts to improve telecommunications technology have been supported by hundreds of companies over the years, adding that the role of “Chinese innovators cannot be ignored,” said Houghton. “. “Anything that restricts competition runs the risk of slowing down the industry,” he said. Market performance should be determined by the technical practices of the competitiveness of the different solutions. ” Ericsson has been campaigning for months against the Swedish government’s ban on Huawei. Earlier this week, in an interview with Chinese media outlet Caixin at the Boao Forum for Asia, President and CEO Ericsson Börje Ekholm said “geopolitics could endanger” cooperation. of the company with its Chinese counterparts, such as Huawei and ZTE, in setting unified global standards in the telecom industry. Ericsson is also concerned about the impact of the Sweden ban on Huawei equipment on its business in China. The company said in its 2020 financial report that Sweden’s sanctions against Huawei risk having an impact on its operations in the world’s second-largest economy. Last year, China was Ericsson’s second largest market after the US, contributing 8% of the company’s revenue – up from 7% in 2019. The company provides equipment and terminal services to national carriers. China Mobile, China Unicom and China Telecom, respectively, serve more than 350 million 5G mobile subscribers in China. According to data from China’s Ministry of Industry and Information Technology, China placed 5G at the top of its agenda to boost the digital economy, which houses 792,000 5G base stations by the end of February, making them the largest 5G network in the world. On April 22, Ericsson Vice President Sinisa Krajnovic, head of the company’s digital services division in Northeast Asia, said that there is still uncertainty about whether the company can fall victim to the stress. geopolitics or not. “When it comes to China, there are things we can control and things we cannot control,” said Mr. Krajnovic. He pointed out that countries like China, which invest early in 5G technology, are more likely to capture “competitive advantage” than latecomers. The administrative court in Stockholm on April 21 began hearing Huawei’s argument as to whether the Swedish authorities’ restrictions were legal. The Swedish Post and Telecommunication Authority decided in October last year to ban the world’s largest telecom equipment maker from supplying the country’s mobile network operators during its 5G rollout. them, on the grounds of security risk. The regulator also issued a similar ban on ZTE.