Nokia, Ericsson May Face Retaliation From China if EU Bans Huawei

Citing people familiar with the matter, a report by The Wall Street Journal is claiming that China may retaliate against Finland’s Nokia and Sweden’s Ericsson if the European Union (EU) follows the U.S. and the U.K. in banning Huawei from 5G networks.

Ericsson and Nokia are among the most immediate beneficiaries of the U.S-led campaign against Huawei. According to the report, China’s Ministry of Commerce is looking into export controls that would prevent the two European telecom gear makers from sending products they manufacture in China to other countries.

The EU has so far not recommended a ban on Huawei but has issued a “toolbox” of security standards that member states should apply while using “suppliers considered to be high risk to build 5G networks.”

The retaliation would be a worst-case scenario that Beijing would use only if European countries came down hard on Chinese suppliers and banned them from their 5G networks, one person told the Journal.

Ericsson and Nokia have not yet issued any official comment regarding the matter.