Hot topics | Coronavirus pandemic

The US Wants To Buy Ericsson And Nokia To Sharpen Competition With Huawei

The US Wants To Buy Ericsson And Nokia To Sharpen Competition With Huawei

The administration of US President Donald Trump is discussing plans to artificially escalate competition with the Chinese telecommunications Corporation Huawei by taking over European companies Ericsson and Nokia by American technology and communications corporations, according to the Wall Street Journal, citing its sources.

According to their information, the US administration has been hatching these plans for a long time, but it was prevented by the coronavirus pandemic. Because of this factor, Washington is only intermittently consulting with Cisco Systems, other American technology companies, Telecom operators, and private equity firms about the possibility of acquiring Ericsson and Nokia. Among other things, it is proposed to grant these European companies tax breaks in the United States, greater access to financing for export operations, or, alternatively, provide state support to those American enterprises that agree to buy Ericsson and Nokia.

According to the publication, the white House is circulating a report prepared by a group of experts, including former NASA Director Daniel Goldwin and former Nokia management member Hossein Muin. They propose to create a technology consortium "under the auspices of the United States" and with the support of the Federal government, which would be able to eliminate the backlog of American enterprises from Huawei. This idea is supported by a group of private investment firms led by Cerberus Capital. According to the publication, the American giants are reticent about the administration's plans, as they are not too interested in taking over second-tier firms such as Ericsson and Nokia.

In May 2019, Donald Trump signed an Executive order imposing a state of emergency to protect the US information and communication infrastructure from foreign threats. In this regard, the Ministry of Trade of the country has blacklisted Huawei since May 17, 2019, due to "threats to national security." In response, the Corporation stated that it carried out commercial activities in accordance with the law.

On may 20 last year, the Ministry of trade issued Huawei a temporary General license for 90 days, which renewed the right to maintain networks and provide software updates for the company's mobile devices. Subsequently, the US authorities renewed the license several times. In August 2018, Trump signed an Executive order that banned US government departments from using equipment manufactured by Huawei.