Ericsson warns investors: This Biden fellow coming into the White House may look to resolve China trade dispute...
- Reference: 1605092410
- News link: https://www.theregister.co.uk/2020/11/11/ericsson_warns_investors_the_huawei/
- Source link:
“Ongoing geopolitical and trade uncertainty from a range of factors may have a material adverse impact on Ericsson’s business, operations, business prospects and consequently on operating results, financial conditions and our ability to meet its targets,” the company told analysts at its Capital Market's Day 2020.
“These uncertainties, include the effects from ongoing trade disputes – notably between the US and China, and the uncertainty on how the change in US administration following the result of the 2020 Presidential Election may impact that trade dispute,” Ericsson added.
The enormous white trunked beast in the room is Huawei. Ericsson has been a beneficiary of the US sanctions against Huawei, particularly in the UK, where it has won contracts to replace it's rival's kit following the British government's decision to eradicate Huawei from mobile networks by 2027.
UK smacks Huawei with banhammer: Buying firm's 5G gear illegal from year's end, mobile networks ordered to rip out all next-gen kit by 2027 [1]READ MORE
Last month, Ericsson scored a major coup when BT’s EE network [2]picked it to provide RAN equipment in several key markets, including all four home nation capitals: London, Belfast, Edinburgh, and Cardiff. This followed major purchase orders [3]from Three in September, and O2 (which, for the sake of accuracy, was the sole UK carrier to avoid Huawei) [4]in June .
The campaign was launched in anger by President Trump in [5]May 2019 and he tightened the thumb screws in [6]May this year too. He has accused Huawei if being a security threat by building backdoors into its kit to allow prying eyes in Beijing to spy on targets. Huawei has always denied this and so far no evidence has come to light that proves Trump's assertions.
In addition to the negative impact on Huawei's carrier business, the pressure from America has dented the company's [7]smartphone business and caused it to scale back Enterprise operations too, [8]at least in the UK .
Ericsson understandably fears that any loosening of sanctions against Huawei by a future Biden administration could stymie its own growth. This feels like a long shot, particularly given the bipartisan nature of the pressure placed against Huawei. Senators from [9]both sides of the aisle lobbied the UK government to reverse its decision to permit Huawei on the non-core 5G network, for example.
Biden is the [10]President Elect and is on track to succeed Trump in January, although Trump has yet to concede defeat.
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[1] https://www.theregister.com/2020/07/14/huawei_ban_uk/
[2] https://www.theregister.com/2020/10/28/ee_ericsson_5g_ran/
[3] https://www.lightreading.com/5g/ericsson-swings-into-5g-ran-action-at-three-uk/d/d-id/764197
[4] https://www.theregister.com/2020/06/10/while_huawei_burns_ericsson_fiddles/
[5] https://www.theregister.com/2019/05/15/president_trump_huawei_emergency_ban/
[6] https://www.theregister.com/2020/05/16/huawei_chip_ban_latest/
[7] https://www.theregister.com/2020/10/30/coronavirus_rates_arent_the_only/
[8] https://www.theregister.com/2020/09/08/huawei_set_to_exit_server/
[9] https://www.theregister.com/2020/03/04/parliament_senate_pressure_uk_huawei_5g/
[10] https://www.theregister.com/2020/11/07/us_presidential_campaign/
[11] https://whitepapers.theregister.com/
Re: ...so far no evidence has come to light that proves Trump's assertions.
Hey, [1]I did try to warn you .
[1] https://forums.theregister.com/forum/all/2020/10/16/fcc_section_230/#c_4128503
Hint:
It wasn't Trump that controlled the military. The attempts to start a new Cold War on China didn't originate from the orange monkey either. Hence, this is not going to stop. I predict the contrary - it is going to get worse.
Re: Hint:
So who does control the military if not the head of the military?
Re: Hint:
Pretending to be naive? Why am I not surprised. Remember when the idiot wanted to withdraw troops from Afghanistan? He was stopped.
Re: Hint:
Did he? I remember he talked about it, but he did say quite a few things he didn't follow through with, if you recall.
Was stopped / changed his mind on / forgot all about / blustered without ever planning to do. Which one to pick?
@IGotOut - Re: Hint:
Tail wagguing the dog.
It is more than a trade war
There are aspects of world political dominance. China has become an economic super power, that has given it the clout to throw political weight around and worry less about the consequences, think: Hong Kong, Uighurs Muslims, actions against Taiwan, ... There is a strong direction of travel and we need to look at where that will go to in 20, 50, 100 years time.
I know that the USA has bullied as well, but it is politically much freer than China. You can say things in front of the White House that would have you removed if you said similar in Tiananmen Square.
Decisions like this have many more facets than first meet the eye.
Re: It is more than a trade war
Hasn't it been this way ever since China got nuclear weapons?
Re: It is more than a trade war
"You can say things in front of the White House that would have you removed if you said similar in Tiananmen Square."
*ALL* lives matter. If you feel the need to put a colour in place of the 'all', then *YOU* are the racist.
Try saying that in America - or even here in the UK. If anyone beats you to a pulp over it, 5-gets-you-10 that it won't be your attacker being prosecuted.
Re: It is more than a trade war
"*ALL* lives matter. If you feel the need to put a colour in place of the 'all', then *YOU* are the racist."
Seriously? The word "Only" is NOT implied in the phrase "black lives matter". I hope you are just ignorant, and nothing more sinister.
If you see people collecting for cancer charities, do you complain that "ALL FATAL ILLNESSES MATTER"?
[1]Why you should stop saying “all lives matter,” explained in 9 different ways
[2]Cambridge expert explains why 'All Lives Matter' completely misses the point
[3]The philosophical flaw in saying “All Lives Matter”
[4]Google for further information.
[1] https://www.vox.com/2016/7/11/12136140/black-all-lives-matter
[2] https://www.cambridge-news.co.uk/news/cambridge-news/cambridge-protests-all-lives-matter-18425709
[3] https://www.prospectmagazine.co.uk/philosophy/black-lives-matter-essay-why-is-saying-all-lives-matter-wrong
[4] https://www.google.com/search?q=all+lives+matter+vs+black+lives+matter
@alain williams - Re: It is more than a trade war
Then you will have no difficulty to explain us why the US has the highest inprisonment rate on the planet, both in relative and absolute terms. The abusive non-democratic Chinese regine is at number 131 on the list. Even with all Uighurs, muslims and HK opponents, they make only half of what the democracy model of US can offer.
Please be careful, Sweden.
Sweden, please don't piss off Biden, or UK telecommunications companies will be forced to rip out all the Ericsson kit, and replace it with Huawei kit!
Understandable
It's understandable that they warn their investors for this, but the chances of Biden reinstating Huawei are very slim. If anything I believe Biden will crack down even harder on China than Trump. Trump merely wanted a good deal, Biden is much more principled in that regard.
The statement from Ericsson implies that they don't believe they are sufficiently competitive with Huawei to beat them in the market place.
If they are more expensive, one would hope the product quality would reflect that, basing your success in the market on political whims or manoeuvres is not a sound business plan.
Ericsson is certainly competitive (as is Nokia) but if your competitor is supported by a nation-state who blocks foreign competitors from entering its market, steals competitors trade secrets and copies them and then undercuts your prices because they hardly do any R&D themselves how can anyone compete?
By banning Huawei and any Chinese state-backed company the market will become more competitive and innovative.
Not accurate
That was blamed on Huawei, yet they happen to have a bunch of 5G patents themselves.
No, the issue is mostly 5 eyes and uncompetitive US based companies. And of course, the fear that China does the same as the US does.
Re: Not accurate
Because they didn't have to do any R&D to get their routers and switches working, so they saved themselves a lot of money and invested that in 5G development. This is basically stealing and investing the profits in a legitimate business.
R&D
While not entirely coasting, Ericsson is definitely lagging in R&D with 1,607 US Patents granted in 2019 versus Huawei's 2,418.
It doesn't matter if Trump concedes or not.
@Lars - Trumpism has won
Sad but so true.
It's been said before. But there never was any evidence that Huawei kit was used for spying and if it was calling home it would be relatively easy to prevent that from happening. Certainly easier than preventing domestic kit such as smartphones or apps such as tiktok from calling home. As such it was pretty obviously a red herring.
As such the real reason behind the whole Huawei debacle was really to try to stop China from stealing even more business from US companies. However what Trump and his monkeys failed to spot was that there are big players in the networking and particularly 5G networking business who are based neither in China nor the USA. I'm sure that Trump really wanted to say that only US kit should be in use (most of which is probably manufactured in China) but if he wanted US allies to jump on the Huawei bashing bandwagon then that was never going to wash. As such Trump and his incompetent buddies decided to make it about national security.
.... and now we've left the EU, and "have our sovereignty back", the UK had to follow suit because Trump said so.
...so far no evidence has come to light that proves Trump's assertions.
Now why does that sound familiar?