The United Kingdom announced a few days ago that it will gradually exclude Chinese Huawei from the 5G country networks by the end of the year due to national related concerns safety. So UK mobile providers will have to remove Huawei equipment from 5G networks by 2027. This decision seems to favor Huawei competitors such as Nokia and Ericsson. However, both of these technology giants use China as an important part of their supply chain, which means that they could be hit with restrictions on the export of network equipment made in the Asian country.
The USA in turn imposed new restrictions on Huawei and other Chinese tech giants in May, hampering their ability to work with US companies. software and chip makers using US intellectual property or equipment. In particular, with the new rules, Huawei will not be able to use TSMC to manufacture the chips inside Appliances of. These tactics provoked reactions in China, prompting the Asian country to consider imposing a similar ban on US companies such as Apple, Qualcomm and Cisco.
In France, government officials are considering a similar decision and have issued recommendations to telecom providers to avoid building their infrastructure using Huawei equipment. The same tactics are expected to be followed gradually by other countries of the European Union.
According to a newspaper report Wall Street, this turned Beijing 's attention to EU and is ready to retaliate for similar measures adopted by EU member states. In particular, after the exclusion of Huawei, China is considering imposing export controls on Nokia and Ericsson to prevent their products from reach China and other countries. However, Beijing will make this move only if European countries exclude Chinese companies from 5G networks.
Nokia and Ericsson have considered options to address potential constraints and are considering moving production elsewhere in Asia or even Europe. This process had already begun last year as a way of avoiding US tariffs and is likely to accelerate if China decides to intervene in the activities of Nokia and Ericsson.