Fri. Jul 10th, 2020

The US government intends to encourage US companies to acquire Nokia

2 min read

As we all know, the accumulation of Chinese technology giant Huawei in 5G technology has led it to lead its competitors in the 5G market. Not long ago, a consulting company based in Boston, USA, said in a report that Huawei’s advantage in 5G has been exponentially better than that of its main competitors Nokia and Ericsson.

Huawei, Nokia, and Ericsson, which are currently leading the 5G market, are not US companies, and this has slightly shamed the United States, which is known for its technology. Prior to this, the US Secretary of Commerce also said that the United States will not give up its leadership position in the global technology industry. Therefore, it has recently been reported that the US government is actively promoting the acquisition of Huawei’s main competitors by domestic companies in the United States in order to fight Huawei in the 5G field.

ban Huawei equipment

In fact, before the U.S. government made a decision to promote the acquisition of Nokia and Ericsson, leaders in the communications industry, the U.S. government was also actively seeking ways to crack down on Huawei’s 5G development momentum, such as lending to Nokia and Ericsson, or giving legal policy-related concessions and tax incentives. But these decisions are not very effective, so they finally decided to promote domestic companies to acquire them.

There is already news that the US government is actively promoting the acquisition of Ericsson by the well-known technology company Cisco, but Cisco has not been interested in this many times because this business requires long-term investment and short-term profitability is not good.

This decision of the US government is actually very difficult to implement because the US government does not have the right to force the US company to acquire another company. In addition, because the profit of the telecommunications equipment market is not high, many commercial companies are not very interested in this.