US wants to buy Ericsson to fight with Huawei

In the global telecommunications equipment market, Huawei ranks first with a 28% market share. In addition, the Chinese manufacturer has a 20% stake in 5G patents. At the moment, the United States is doing its best to put sticks into the wheels of Huawei, which is accused of collecting information for the Chinese government.

According to unconfirmed reports, the US government is currently looking for ways to support Huawei rivals. There are many ways, such as providing funds, legal support, and tax breaks for companies such as Ericsson and Nokia. In addition, the United States is seriously considering buying Ericsson to fight Huawei. More precisely, the administration of US President Donald Trump plans to support leaders in the technology industry, for example, Cisco Systems, so that they buy Ericsson.

However, a problem arises because the telecommunications equipment market is not a highly profitable industry. Therefore, many American companies have no real interest in such an acquisition. Much will depend on the government support and benefits that the United States will provide.

The United States not only banned the use of Huawei equipment in the country, they are trying to convince all its allies to do the same. At the same time, Huawei claims that the company has never spied on the Chinese government or anyone else.

Leave a Reply

Your email address will not be published. Required fields are marked *

9 + twenty =