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Swedish authorities have banned the Chinese telecom giant from selling its 5G products in the country and also ordered it to remove equipment already installed by January 1, 2025.
After the United Kingdom, Sweden is the second European country to ban, as a national security measure, the 5G technology developed by the Chinese equipment manufacturer Huawei.
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Huawei is initiating arbitration proceedings against the Swedish authorities before ICSID, the International Center for Settlement of Investment Disputes. According to the Chinese giant, Sweden’s decision to exclude it from the deployment of 5G harms its economic activities.
Huawei could claim more than 5 billion Swedish crowns, or almost 500 million euros. An amount that could still increase. For Sweden, it’s not Huawei bashing, or anti-Chinese racism. But it is a question of sovereignty. Huawei is regularly accused of spying for Beijing. The risk is not the same, with European equipment manufacturers.
The measure will weigh down relations between the two countries. Today, the Swedish telecom group Ericsson, which generates 10% of its turnover in China, fears reprisals from Beijing.
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