Ericsson CEO Allegedly Threatens to Leave Sweden Over Huawei Ban

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Ericsson CEO Borje Ekholm is pressuring the Swedish government to reverse the ban on preventing Huawei and ZTE from participating in the rollout of 5G. Last year, the Swedish government enacted the ban and the directive to remove Chinese 5G equipment by January 2025 due to security concerns. 

Swedish newspaper, Dagens Nyheter, reported that Ekholm threatened to pull the telecommunications company out of Sweden if the ban continues. In November 2020, Ekholm said the government’s decision to block the Chinese manufacturer from the 5G auction restricts free trade, delays the rollout of the next-generation technology, and deviates from the European Union’s 5G guidelines. He said Ericsson and Sweden were “built on free trade,” and it’s “important that we have open markets and free competition.”  

Ekholm sent a series of text messages to the Foreign Trade Minister, Anna Hallberg, regarding the Swedish Post and Telecom Authority (PTS) ban, reported Dagens Nyheter. According to Hallberg, she has not contacted PTS and noted that she wouldn’t influence individual authorities’ decisions.

It was reported that the Chinese market contributes 10 percent to Ericsson’s sales, and it appears that China may retaliate by banning the Swedish telecom. Although Huawei is a direct competitor of Ericsson, Ekholm said it was also important to maintain collaboration on industry standards.

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