On Sunday, January 31, Huawei Technologies said it had initiated arbitration proceedings against Sweden after the Nordic country banned it from rolling out its 5G products. The claim amount was SEK 5.2 billion (approximately 560 million USD).
The Chinese company said in a statement to Agence France-Presse, “The Swedish authorities’ decision to discriminate against Huawei and exclude it from the 5G roll-out has significantly harmed Huawei’s investment in Sweden, in breach of Sweden’s international obligations.”
Due to security concerns, Sweden has become the second European country, after the United Kingdom, to explicitly exclude Chinese businesses like Huawei, while also the first country in the European Union to do so.
In recent years, Huawei has had numerous setbacks. The Swedish Post and Telecom Authority (PTS) declared on October 20, 2020, that Chinese telecom companies Huawei and ZTE would be barred from participating in the country’s 5G network building program. Sweden also ordered Huawei to remove already installed equipment by January 2025.
Huawei then appealed the decision of PTS. However, judge Ulrika Melin, citing the Administrative Court’s conclusion, pointed out that Sweden’s security is an important reason and rejected Huawei’s application for an appeal in June 2021.
According to Reuters, in 2019, the Trump administration identified Huawei as owned or controlled by the Chinese military. Therefore, Washington has placed Huawei on a trade blacklist over national security concerns and persuaded allies to exclude Huawei from their 5G networks.