China is considering “retaliatory strike” against European communications companies if the EU prohibits the use of Huawei 5G equipment. This was reported by the Wall Street Journal with reference to unnamed sources. In this development, Nokia and Ericsson will suffer first of all.
If Europe imposes sanctions against Huawei, the Chinese Ministry of Commerce is ready to introduce export control over equipment Nokia and Ericsson, which is produced in China. Simply put, both European companies will not be able to send to other countries the products assembled at Chinese factories. Given that almost all of Nokia and Ericsson’s production is located in China, this actually means stopping shipments of 5G equipment from two vendors.
Probably, this decision of the Chinese government is caused by the UK’s recent intention to abandon the Huawei network equipment. In the EU, the member states of the union are still advised to decide on their own position regarding supplies from a Chinese manufacturer.