The US Attorney General William Barr has suggested the US and its allies invest in Nokia and Ericsson, as part of efforts to counter Huawei and China's dominance in the 5G networks market. This could mean acquiring a controlling stake in the European equipment makers, Reuters reports.
Barr said there had been some proposals that concerns about Huawei "could be met by the United States aligning itself with Nokia and/or Ericsson, through American ownership of a controlling stake, either directly or through a consortium of private American and allied companies". He was speaking at a Washington think tank conference on China.
The investment could make the companies more formidable competitors and "eliminate concerns over its staying power, or their staying power", Barr said. "We and our closest allies certainly need to be actively considering this approach."
The US alleges that the Chinese government could use Huawei’s equipment for espionage, which Huawei denies.
