Huawei is the target of a new attack by the US, which does not seem to be satisfied with the European Commission's decision not to ban the Chinese company's 5G equipment, so it is now looking for new ways to attack it. More precisely, the US attorney general, William Barr, suggested that the big US IT and telecom companies buy shares in Nokia and Ericsson to force them to develop products much more competitive with those that Huawei is now selling.
Huawei it has products that are not only cheap, but also with very good performance, those from Nokia being eliminated by Telekom from their list of suppliers because they did not have equipment that could offer performance as good as those from the Chinese. Now the US attorney general would like the big American companies in the IT sector to buy enough shares of Nokia and Ericsson so that they become majority shareholders and control the projects for the development of new products.
Huawei: The INCREDIBLE plan of the USA to ATTACK it in 2020
Huawei would have serious difficulties in remaining a leader on the telecommunications equipment market if Nokia and Ericsson had the necessary funding to develop much more competitive telecommunications equipment. Barr suggests that the US should ally with these companies against those from Huawei, and all so that telecommunications operators in the US can buy secure equipment from European manufacturers, and not from the Chinese.
"Some propose that these concerns could be met by the United States aligning Nokia and/or Ericsson through American ownership of a controlling stake, directly or through a consortium of American and allied private companies. Putting our large market and financial strength behind one or both firms would make a more formidable competitor and eliminate concern about its strength."
Huawei it was helped a lot by the Chinese government with subsidies and investments, which is one of the reasons why it can sell telecommunications equipment at lower prices than Nokia and Ericsson. Now the USA is suggesting something similar to support these competitors at the expense of those from Huawei, but of course a plan of this kind would be very difficult to implement, although with Donald Trump behind it, it has a chance of being realized.
Huawei interestingly, at one point he offered to give some American companies the technologies used for 5G telecommunications equipment so that they could create competing products, but the Americans didn't really want that.
