The United States, along with many of its allies, imposed a ban on the use of Huawei cellular equipment for 5G networks, explaining its actions in the interests of protecting national security. Beijing is doing the same with Huawei's western competitors, according to The Wall Street Journal.
State-owned wireless operator China Mobile, the world's largest by subscriber base, provided 5.4% of 5G equipment tenders to non-Chinese suppliers in July, up from 11% in the previous round in 2020.
Most of all lost the Swedish company Ericsson AB, whose share from 11% last year fell to 1.9%. The Chinese state media described Ericsson AB's failure as retaliation for Sweden's decision to ban Huawei and ZTE equipment from its 5G networks.
The Wall Street Journal noted that China is increasingly relying on Chinese equipment. The US has effectively closed Huawei, the world's largest cellular equipment maker, from access to large networks over concerns that Beijing could use the company's resources for espionage. In turn, Huawei and Beijing say these fears are unfounded.
Many countries have followed Washington's example, although there are exceptions, such as Germany. According to research firm Dell'Oro Group, countries that have imposed or are considering restrictions against Huawei account for more than 60% of the global $ 35 billion cellular equipment market. Thanks to the Huawei lockdown, tenders outside of China are now being won by Ericsson and Nokia Corp.
Simon Leopold, telecommunications analyst at Raymond James, said the telecommunications industry is becoming increasingly polarized between East and West.
In the about $ 6 billion Chinese tender in question, China Mobile awarded Huawei hardware orders for 60.5% of the total, up from 57.7% last year. ZTE also received orders, its share is 31.2%. Another Chinese supplier, Datang Telecom Group, had 2.8% of orders. The largest share among foreign companies was taken by Nokia - 3.5%.
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