China has told Sweden to reconsider its move to ban Huawei and ZTE from the country’s 5G phone networks, warning that the move could have consequences for Swedish firms. Julian Satterthwaite reports.
The official said that followed advice from the country’s armed forces and security service. Now, it’s local champion Ericsson that may have the most to worry about.
The telecom gear maker has deals to supply all three of China’s main mobile networks. Those agreements could be in jeopardy if China retaliates.
On Wednesday, the firm reported better than expected operating earnings. They jumped to about $1 billion for the latest quarter, well above analysts’ expectations, but the firm cited China’s 5G network rollout as the big driver for that. Ericsson executives will be watching very closely to see what Beijing does next.