A Swedish court has upheld Huawei’s sale of 5G networks
A Swedish appellate court has upheld a lower court ruling banning Huawei from selling 5G network equipment in the country, in the latest setback to the Chinese telecom company’s hopes of staging a comeback.
In 2020, the Swedish telecom regulator PTS banned Huawei from supplying 5G equipment to Swedish mobile operators with reference to security issues raised by the Swedish security service, a decision that the company appealed in court.
A lower court last year upheld that decision.
The problem arose after the United States claimed that China could use Huawei espionage equipment and European governments followed suit by tightening controls on Chinese-built 5G networks. Huawei has denied that it is a national security risk.
Sweden had asked telecom companies to remove telecom networks from Huawei and Chinese rival ZTE from existing infrastructure and core functions before January 1, 2025.
Huawei’s Swedish unit said in a statement on Wednesday that they are disappointed with the ruling from the Stockholm Court of Appeal.
“We will analyze the ruling and evaluate our next steps, including other remedies under Swedish law and EU law, to continue to protect our legitimate rights and interests,” Huawei wrote.
Sweden’s quarrel with Huawei has also led to Sweden-based Ericsson facing backlash in China.
The share of revenue Ericsson earns from China has fallen to about 3 percent of the total amount from 10-11 percent, and the Swedish company was forced to reduce its operations in one of its largest markets, writes Reuters.
Huawei ranked second in the EU scoreboard for industrial R&D investment in 2021 compared to third place in 2020. Huawei claims that much of the global research that Huawei conducts takes place in Europe. Huawei started its first research center in Sweden in 2000. Huawei employs over 2,400 researchers in 23 research centers across Europe, according to their website.