China May Retaliate Against Nokia And Ericsson if EU Countries Decide To Ban Huawei  

Beijing may consider retaliatory measures against the Chinese operations of two major European telecommunication-equipment manufacturers, Nokia Corp. and Ericsson , if the European Union members follow the lead of the U.S. and U.K. in barring China’s Huawei Technologies Co. from 5G networks, The Wall Street Journal reported.

Citing sources familiar with the matter, The Wall Street Journal reported that China’s Ministry of Commerce is considering placing export controls on Finland's Nokia and Sweden's Ericsson that will prevent them from sending products they manufacture in China to other countries. Both Nokia and Ericsson have manufacturing plants and thousands of employees in China.

Last week, the U.K., which exited the EU earlier this year, ordered its wireless carriers to stop buying Huawei 5G equipment by the end of 2020 and remove all existing gear made by the Chinese telecoms behemoth from the 5G network by 2027.

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

Germany, EU’s economic powerhouse, is still not decided on allowing Huawei to build its 5G network.