The Swedish IT industry is fearing a negative economic response by China following the ban on Huawei and ZTE technology in the 5G network.
Indeed, Sweden has recently decided to continue blocking Chinese suppliers from its 5G network roll-out despite the possible negative impact on the economic interests of Sweden and Swedish companies trading with China.
It was reported that Huawei is seeking to reverse the administrative court’s ruling by taking its case to Sweden’s court of appeal towards the end of 2021. China stated that this ban goes against Swedish and European Union (EU) laws on free competition and discrimination. It also declared that it wasn’t proved that Huawei technologies are a security threat to Sweden.
However, the regulator noted that 5G equipment supplied by Nokia and Ericsson to the Swedish marketplace didn’t raise national security or network risk concerns, contrary to Huawei’s technologies. Hence, Huawei is denied access to the auction of frequencies in the 3.5GHz and 2.3GHz bands, and any Huawei equipment already installed in older 3G and 4G networks in Sweden need to be removed by 1 January 2025. Moreover, Huawei and ZTE are also prohibited from carrying out new 5G installations or tendering for 5G-related network contracts.
The decision was made based on the account of national security concerns as well as the risk assessments. Due to their perceived associations with the Chinese government, Huawei and ZTE technologies are seen as presenting major security risks.