Sweden bans Huawei; Ericsson risks blowback

Sweden is the latest country to ban Huawei.

On Tuesday (October 20) Stockholm said the Chinese telecom gear maker would not be allowed a role in its 5G phone networks.

The ban also applies to rival Chinese firm ZTE.

Swedish regulators said the move flows from security concerns.

They described China as one of the biggest threats to the country.

The ban follows diplomatic pressure from Washington, and comes after a similar move by the UK.

In July London said it wanted all Huawei gear purged from the country’s mobile networks by 2027.

But one of Sweden’s own industrial champions could now risk blowback.

Ericsson has won contracts to supply 5G gear to all three major mobile networks in China.

Analysts say those deals could be at risk if Beijing decides to retaliate.

Future sales could also be jeopardised.

For now though, Ericsson and Finnish rival Nokia look like the big winners from the Swedish move.

U.S. officials have previously said they are the only companies that should get 5G contracts in Europe.