China may restrict exports of Nokia and Ericsson equipment if EU countries ban Huawei

nanoguy

Posts: 517   +7
Staff member
The big picture: With Huawei slowly losing its biggest telecom customers in Europe, the direct beneficiaries of such a decision are Nokia and Ericsson. Both share one common vulnerability, though, they both use China as an important part of their supply chain, and could always be hit with restrictions on exporting network equipment made in the Asian country.

The United States introduced a new set of restrictions on Huawei and other Chinese tech giants last May, effectively blocking their ability to do business with American software companies and chip makers that use American intellectual property or equipment. Most notably, the new rules brought an end to Huawei's ability to tap into TSMC to fabricate the chips that go inside its devices.

Naturally, this raised some eyebrows in Beijing and gave way to discussions among Chinese officials about imposing a similar ban on American companies like Apple, Qualcomm, and Cisco.

Earlier this month, Huawei received another blow in Europe where the UK decided to phase out Chinese-made 5G equipment from its networks due to national security concerns. The move will deprive the company of one of its largest customers for network equipment, and this is just the beginning.

In France, government officials are considering a similar decision, and in the meantime have issued recommendations for telecom providers to avoid building out their infrastructure using Huawei equipment. The same guidance is slowly being issued across other countries in the European Union.

According to a Wall Street Journal report, this has turned Beijing's attention towards the EU, and is ready to retaliate against similar measures being adopted by member countries. One set of measures would target two big telecom equipment makers -- Nokia and Ericsson -- preventing them from exporting hardware manufactured in China to other countries.

The two companies reportedly reviewed their options to deal with potential restrictions, and are considering moving production elsewhere in Asia or even Europe. This process had already started last year as a way to avoid US tariffs and is likely to accelerate, should China decide to interfere with Nokia and Ericsson's Chinese operations.

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QuantumPhysics

Posts: 3,018   +2,830
Continuing to do business in any way with China, or in China, will always be a bad idea.

How many times have you lived in China, travelled to China - or anywhere in Asia or southeast Asia in the previous 5 years?

I've lived in China (Shanghai). I travel to Asia ASAP and would be there right now if not for Coronavirus.

The reality is that China already is the trade KING of Asia and Southeast Asia.

Chinese made products dominate Asia and Southeast Asia.

While America (under Trump) can be belligerent with China, the simple fact is America is more dependent on China than China is on America. America (under Trump) has virtually no pull anymore in Asia/SE Asia.

Specifically when I focus on SE Asia with 655 Million people alone, you're talking about emerging markets twice the size of America.

Move to Africa and South America and you're talking about 2 Billion people with mostly emerging markets.

The only people fool enough to believe America is hurting China are deluding themselves. Our major economists know better than that. America is far more economically vulnerable now (under Trump) than ever before. Many of our NATO allies are even our enemies now.
 

scavengerspc

Posts: 432   +290
TechSpot Elite
How many times have you lived in China, travelled to China - or anywhere in Asia or southeast Asia in the previous 5 years?

I've lived in China (Shanghai). I travel to Asia ASAP and would be there right now if not for Coronavirus.

The reality is that China already is the trade KING of Asia and Southeast Asia.

Chinese made products dominate Asia and Southeast Asia.

While America (under Trump) can be belligerent with China, the simple fact is America is more dependent on China than China is on America. America (under Trump) has virtually no pull anymore in Asia/SE Asia.

Specifically when I focus on SE Asia with 655 Million people alone, you're talking about emerging markets twice the size of America.

Move to Africa and South America and you're talking about 2 Billion people with mostly emerging markets.

The only people fool enough to believe America is hurting China are deluding themselves. Our major economists know better than that. America is far more economically vulnerable now (under Trump) than ever before. Many of our NATO allies are even our enemies now.
Yes, you have another pretty novel to say very little but here is the thing. You are obviously quite concerned with the business prospects and rewards by continuing to do business with China. Benefits that will be felt by a very few percentage of Americans.

Myself, I'm thinking of rising prices for items such as smartphones that some people have to buy with a credit card and pay off for months or even a year or two. I'm thinking of little kids that were injured or worse by shoddy toys and games, people of all ages poisoned by bad food, and pets sickened or killed by toxic treats. All from your butt buddies in China.

Defend China to the people of your ilk who see risk-reward as always acceptable because their only dog in the fight is the profits. I'm willing to bet there are few people here or anywhere that share your twisted pathetic view of what is "worth it".

Business with China has been toxic relationship as time goes on and you can write a book on why you think its an acceptable risk but you will be preaching to the one person who actually believes your bullshit. You.
 

PurpleYoda

Posts: 113   +77
I do not follow politics, especially in America but I am curious, should Trump loose the re-elections, whoever comes next could theoretically just reverse Trump’s politics concerning China. Did any of the candidates reflected on that matter?
 
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Lounds

Posts: 487   +367
The thing is in reality China is the world's biggest super power by the fact it manufacturers more products than any other country in the world. The US's economy is only bigger by inflated prices on the stock market, but in reality China is much much bigger. If China's economy collapses then the whole world economy will and it will be worse than the crash of 2008.
 
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Shadowboxer

Posts: 736   +443
Manufacturing in China can be moved. It’s not as if the Chinese are the only people who can build a factory that users low skilled workers to produce electronics. They are just the cheapest and they aren’t always even the cheapest.

It’s a lot easier for a company like Nokia to switch to a factory elsewhere than it is for a company like Huawei to find another chip fabrication.

The fact is China doesn’t have that much outside of dirt cheap labour.
 

Achaios

Posts: 26   +77
I used to live & work in China too alongside many Americans. Dunno why that somehow makes me eligible to bash Trump.

China is the enemy, there will be a war in the future between the USA (NATO) & China. It is good to prepare for it from now, and eliminating HUAWEI from network infrastructures in the West is a sound plan as it restricts their available SIGINT options.

I would like to add, America is 100% responsible for making China into what it is today. It's time to pull the plug as the Dragon will bite America's butt.
 

S Hone

Posts: 21   +16
So Nokia & Ericsson might need to move production to another country for yet another reason. Add this to the million other reasons to move out of ccp china
 

3ogdy

Posts: 23   +10
I feel if this was 2005 then maybe China would have a point lol.
Remember: both Nokia and Ericsson manufacture and sell telecommunications equipment and components. You know, the network our phones connect to. Phones are just terminals.
 

QuantumPhysics

Posts: 3,018   +2,830
Business with China has been toxic relationship as time goes on and you can write a book on why you think its an acceptable risk but you will be preaching to the one person who actually believes your bullshit. You.


Whatever. I'm betting on China.

Just like the slavery era, business with China has allowed Americans to live a quality of life their productivity never justified and now, as evident by Apple, America will simply switch to India for yet another source of slave labor.

Unlike Americans, China isn’t conflicted or divided by a maniac in office or racists.

China has already won South East Asia, Africa and South America because America has neglected them and mistreated them for so long - as evident by Venezuela, Bolivia, Columbia, Cuba,etc, etc,etc.



美国死定了
 
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QuantumPhysics

Posts: 3,018   +2,830
Of course you are, I doubt anybody here is surprised coming from you.

No, it's just your type that might make a buck if it had died that want to believe that.

RON PAUL has a great Ad on Youtube for you called "now they work for us".

And your translator is poor. It means "America is finished".
 

Shadowboxer

Posts: 736   +443
Whatever. I'm betting on China.

Just like the slavery era, business with China has allowed Americans to live a quality of life their productivity never justified and now, as evident by Apple, America will simply switch to India for yet another source of slave labor.

Unlike Americans, China isn’t conflicted or divided by a maniac in office or racists.

China has already won South East Asia, Africa and South America because America has neglected them and mistreated them for so long - as evident by Venezuela, Bolivia, Columbia, Cuba,etc, etc,etc.



美国死定了
My prediction - the world will abandon China and China will slowly turn to tyranny. It will end in conflict and the people of China will suffer the most for it. Maybe it will be a civil war or an international one. But China is definitely divided or “conflicted”, we just don’t see it through all the censorship and state controls.

Of course it could all turn around if the Chinese stopped attempting to meddle in the affairs of other countries and started attempting to use their might to improve the living conditions of their workforce. But apparently no, they are more interested in totalitarianism and individual profit.

NATO will soon once again prove its worth here.
 

scavengerspc

Posts: 432   +290
TechSpot Elite
And your translator is poor. It means "America is finished".
No translator. One of my staff is a native of Taiwan and I learned some basics just for fun in the late 90s.

And BTW, people like you are finished, not America. Or any western Democracy for that matter.

So who is surprised that QuantumPhysics thinks "America is finished"?

Let me make this perfectly clear for you. China has thrived as a tool, an instrument of the manufacturing process. Almost every time they make something of their own design more complicated than the Ronco pocket dildo it fails miserably. Even their few successes have been because the basic\starter designs were stolen.

As Shadowboxer basically said above Chinese success depends entirely on the rest of the world allowing them to thrive.
 
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QuantumPhysics

Posts: 3,018   +2,830
My prediction - the world will abandon China and China will slowly turn to tyranny. It will end in conflict and the people of China will suffer the most for it. Maybe it will be a civil war or an international one. But China is definitely divided or “conflicted”, we just don’t see it through all the censorship and state controls.

Of course it could all turn around if the Chinese stopped attempting to meddle in the affairs of other countries and started attempting to use their might to improve the living conditions of their workforce. But apparently no, they are more interested in totalitarianism and individual profit.

NATO will soon once again prove its worth here.

"The world"???

Nope.

More likely, the world will abandon America - like they are now.
 

QuantumPhysics

Posts: 3,018   +2,830
No translator. One of my staff is a native of Taiwan and I learned some basics just for fun in the late 90s.

And BTW, people like you are finished, not America. Or any western Democracy for that matter.

So who is surprised that QuantumPhysics thinks "America is finished"?

Let me make this perfectly clear for you. China has thrived as a tool, an instrument of the manufacturing process. Almost every time they make something of their own design more complicated than the Ronco pocket dildo it fails miserably. Even their few successes have been because the basic\starter designs were stolen.

As Shadowboxer basically said above Chinese success depends entirely on the rest of the world allowing them to thrive.

$30,000,000,000,000 in debt by the end of Trump's disastrous presidency.

Americans waiting by their mailboxes for welfare checks right now.

McConell said that $3 Trillion spending is DOA and the "essential workers" (sacrificial) ain't getting no "$10,000 hazard pay".

This is worse than 2006 - 2008.

and don't worry about me. My business is going strong.
 
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Shadowboxer

Posts: 736   +443
"The world"???

Nope.

More likely, the world will abandon America - like they are now.
Nope don’t see it happening. America owns all the IP. Think about it, most of the big tech companies around the world are American - MS, Apple, Intel, Nvidia, Facebook, I could go on. And whilst they can manufacture their products anywhere they all only get designed in one place - Silicon Valley. American tech dominance is nothing new and only really currently challenged by the Koreans in Samsung, who have also been recently closing down their factories in China albeit for different reasons to America.

Anyway, the world isn’t already abandoning America, in fact global demand for tech is at an all time high. Their economy is actually quite strong at the moment. You mention debt levels - this isn’t a good indicator of how well an economy is doing. This debt isn’t like an overdraft you or I may have.

This is a positive thing. Americans have rights, privacy, freedom of speech. You get none of this in China or many other states around the world. I’ve been to China on a several occasions for business, I was born in the USA and I’ve lived in several countries (currently the U.K.) and I can tell you now that Chinese is one of the last nationalities I would pick to be if I had a choice.