Citing the contents of a related text message it obtained, Swedish mainstream media outlet Dagens Nyheter reported on Friday (Jan. 1) that Ericsson CEO Börje Ekholm called on the Swedish Ministry of Commerce to ‘take action’ and ‘step in and take the lead’ in lifting huawei‘s 5G ban.
The Daily News reports that in a message sent to Swedish Commerce Minister Anna Hallberg, after speaking repeatedly with Bao Yikang about Ericsson’s presence in Sweden and whether it would continue to exist as it has in the past, this was seen as an indirect threat. “I am still hoping for help from Sweden and for our presence in this country to be valued,” wrote Bao Yikang, “While thanking you for the work you have done, it does seem that Sweden is a bad country for Ericsson as far as it goes.” Ekholm reportedly sent messages to Halberg on Nov. 4 and 8, 2020, respectively.
Halberg responded by saying, “I really want to do everything I can, Berger.” However, the Swedish government cannot intervene in the ban because the decision was made by the Swedish Telecommunications Supervisory Authority (PTS) on the advice of the security services and the defense forces.
But the Daily News also pointed out that, on the other hand, Bao Yikang denied to the newspaper that he had threatened that “Ericsson would leave Sweden”. He stressed, “Our soul is in Sweden, and this is Ericsson’s base.”
Under the media spotlight but ……
Swedish journalist Jojje Olsson also tweeted the Swedish-language story, which requires payment to read, and translated the highlights into English: “Bao Yikang pointed out to the Swedish Ministry of Commerce that Sweden’s 5G ban on Huawei could lead to penalties for his company,” “Bao Yikang side-stepped the threat that Ericsson would consider leaving Sweden if Huawei was banned from participating in 5G construction in Sweden”, “Bao also said in the conversation that Ericsson was helping Huawei find legal representation and had spoken to several Swedish law firms, but all to no avail, describing ‘there are a lot of cowards here'”
The article was also indirectly cited by Chinese official media outlet Global Times, which reported, “‘pledgetimes’ website quoted the Swedish newspaper The Daily News as saying that the Swedish government’s ban on Huawei’s participation in the country’s 5G construction has raised concerns at Ericsson. Ericsson is worried that it will be affected in the Chinese market and has pressured the Swedish government as a result.” The Global Times article titled “Ericsson CEO: ‘Ericsson will leave Sweden if ban on Huawei remains'” was widely reprinted in Chinese media, but the Daily News did not actually write in the original article that Bao Yikang had issued such a direct threat.
Ericsson supports Huawei however ……
Bao Yikang did publicly express his support for Huawei. He told the Financial Times in November last year that Sweden’s decision to ban the use of Chinese Huawei equipment for 5G networks restricted free competition and trade. Bao made the statement shortly after a Swedish court overturned Huawei’s 5G ban. He noted to the Financial Times, “I think competition will make us a better company in the long run. There may be pain in the short term, but in the long term it will drive us to be more innovative and produce better products for our customers.” However, in mid-December, the latest ruling from the Stockholm Court of Appeal put the Huawei 5G ban back into effect, but also held that Huawei has the right to appeal the Swedish Telecommunications Regulatory Authority.
Ericsson’s headquarters in Sweden
However, Bao Yikang’s support for Huawei is not unrelated to Ericsson’s business in China. China has been building and laying down 5G networks in the country, which has brought Ericsson a lot of profit. “The significant rollout of 5G networks in China was the biggest incremental driver of our business this quarter,” Carl Mellander, the Swedish telecom equipment maker’s chief financial officer, said in an interview with Reuters in October. Ericsson has received technology purchase orders from all three major Chinese communications providers, and some media outlets claim Ericsson has about a 10 percent share of China’s 5G market.
Melander’s interview comes a day after Sweden’s telecom regulator announced that it would ban Chinese communications groups Huawei and ZTE from participating in the construction of the country’s 5G network due to security concerns. Outsiders fear that this decision by Swedish officials is likely to trigger retaliation from the Chinese side.
After the UK in July last year, Sweden is the second country in Europe to completely ban the use of Huawei equipment. Ericsson and Finland’s Nokia are Huawei’s main competitors in the supply of 5G equipment and infrastructure.
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