When Huawei 5G equipment was permanently banned in Sweden in June 2021, one of its senior European executives, Kenneth Fredriksen, warned “ We will continue to fight for our right to be in the market [suédois] “. The Chinese company kept its word on January 30.
The war waged by the United States against Huawei is not over
Huawei has initiated international arbitration proceedings with the World Bank Group International Center for Settlement of Investment Disputes. It is the main competent institution in the event of a conflict between a State and a company over international investment treaties.
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Member States International Center for Settlement of Investment Disputes of the World Bank Group. Credit: ICSID
In a press release, relayed by theAFPHuawei explains that “ The Swedish authorities’ decision to discriminate against Huawei and exclude it from the 5G rollout has materially harmed Huawei’s investment in Sweden, in violation of Sweden’s international obligations “.
The case is linked to the movement to ban the Chinese company from 5G networks initiated by the Trump administration in 2018. For the United States, via Huawei, the Chinese government could spy on, or even paralyze, 5G networks equipped of its devices. An accusation firmly denied by the telecommunications giant, then world leader in the market.
Sweden may have to pay 500 million euros or more
After the United Kingdom, the Swedish Post and Telecommunications Authority was the first in Europe to follow the United States. In October 2020 the authority banned Huawei and ZTE equipment from its 5G infrastructure. A decision accompanied by the obligation to remove the devices already installed by January 1, 2025. More or less significant restrictions have been implemented in several other Western countries, including France.
In Sweden, Huawei had challenged the authority’s findings in a local court. Without success: in June 2021, the Swedish justice confirmed the decision. In response, China threatened to counterattack by limiting or even banning the world number 2 in 5G equipment, the Swedish company Ericsson.
According to public television in Sweden, Sveriges Televisio, Huawei would have claimed 5.2 billion Swedish crowns in repairs, or just under 500 million euros. In case of victory of the company during the arbitration procedure the sum could be more salty.