China Warns Sweden after Banning 5G Networks for Huawei

Chinese foreign ministry demanded Sweden on Thursday, to remove its ban on Huawei firm to avoid hurting prospects for Swedish companies.

The decision was the latest in a series of restrictions by governments around the world on the Chinese companies, after continued pressure from the U.S. to avoid potential security risks in 5G networks. China was Sweden’s eighth-largest export market in 2019, according to Sweden’s official statistics agency.

According to Bloomberg, the continuing trade war between the U.S. and China has caused the once-tightly knit tech industry to come under pressure. Chinese technology companies including Huawei have expressed strong concerns to local regulators about Nvidia Corp.’s proposed acquisition of Arm Ltd., potentially jeopardizing the $40 billion semiconductor deal.

Later, Sweden announced that it banned equipment from Chinese telecommunication firms Huawei and ZTE from its new 5G network, joining other European nations that have restricted the role of Chinese suppliers.

According to the Swedish Post and Telecom Authority (PTS), the setting of the license conditions followed assessments by the Swedish Armed Forces and security service, which called China one of the biggest threats against Sweden.

Chinese Huawei firm

Also, Huawei and ZTE equipment already installed will have to be removed by 1 January 2025, PTS reported.

The new installations in the central functions for the radio use of the frequency bands must be carried out without Huawei or ZTE suppliers, the Swedish authority reported in a press release.

Moreover, Sweden's decision follows the lead of the UK, who decided to ban Huawei from involvement in its 5G network in July.

On other hand, in France, Huawei will not be subject to a total ban on the 5G market, but operators already using the firm’s equipment will have operating authorizations limited to eight years.

Noteworthy, Huawei has become the world leader in telecom network equipment with a notable lead over 5G, and now outstrips its rivals in market share.