China may punish Nokia and Ericsson if European Union bans Huawei

China is likely to retaliate against telecom network suppliers makers Nokia and Ericsson if the European Union bans Huawei Technologies from 5G networks, the Wall Street Journal reported.
ZTE 5G base station in China
The United Kingdom last week ordered telecom operators not to purchase 5G components from Huawei from the end of this year and remove all existing gear made by the Chinese telecoms giant from the 5G network by 2027.

Sweden’s Ericsson and Finland’s Nokia are among the most immediate beneficiaries of the U.S-led campaign against Huawei.

China’s Ministry of Commerce is looking into export controls that would prevent Nokia and Ericsson from sending telecom equipment products it makes in China to other countries, the Journal reported.

Chinese government is yet to ask China Mobile, China Telecom and China Unicom to block purchase of telecom network from Nokia and Ericsson. China Mobile, China Telecom and China Unicom are spending billions for building 5G network.

The retaliation against Nokia and Ericsson 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.

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.