An upcoming court decision will determine Huawei’s future fate in Sweden, and could also be a turning point for Swedish champion Ericsson’s future in China. Ericsson has been invited to participate in 5G tests in China. Global Times warned earlier that the Chinese side allowed Ericsson to participate in the test, only to give it an “interview” opportunity, does not mean “hired”. Ericsson has repeatedly criticized Sweden’s ban on Huawei for restricting free competition.
The Swedish court is about to make a decision on Huawei’s ban, which affects Ericsson’s fate in China. The lawsuit stems from the Swedish government’s exclusion of Huawei as a 5G equipment supplier in October last year based on national security concerns. Huawei filed a lawsuit against the decision, and the court is expected to issue a ruling in the coming weeks.
China has earlier asked Sweden to “immediately correct its mistake” and this month implicitly warned of possible retaliatory action against Ericsson. China’s Global Times reported on May 10, citing sources, that by allowing Ericsson to participate in the test, China was only giving it an “interview” opportunity, not an “offer”. According to the report, “the Swiss side needs to carefully consider its future initiatives with China and weigh them carefully.”
An Ericsson spokeswoman confirmed that the company has been invited to participate in 5G tests in China. Ericsson won 5G contracts with three major Chinese operators last year, and about 10 percent of Ericsson’s revenue comes from the Chinese market. Analysts have been warning of the risk of retaliation by China, a suspicion shared by Ericsson CEO Bao Yikang (Börje Ekholm). We have been at risk of being affected by auctions in different countries,” he said last month in response to questions about diplomatic tensions between Sweden and China, according to the report, which said that Bao had previously criticized Sweden’s ban on Huawei for restricting free competition.
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