After Sweden barred Huawei from rolling out 5G goods, the Chinese tech giant says it has started arbitration proceedings against the Nordic country. “The Swedish authorities’ decision to discriminate against Huawei and exclude it from the 5G deployment has affected Huawei’s investment in Sweden significantly, in violation of Sweden’s international commitments,” Huawei said in a statement to AFP on Sunday.
As a result, Huawei was forced to file a complaint with the World Bank Group’s International Centre for Settlement of Investment Disputes (ICSID) “against the Kingdom of Sweden” as a result of “a number of measures taken by the Swedish authorities targeting directly Huawei’s investments in Sweden and excluding Huawei from the roll-out of 5G network products and services in the country.”
The amount of damages claimed by Huawei was not specified. The total demanded was 5.2 billion Swedish crowns (€495 million), according to public broadcaster SVI, but it could wind up being much higher. Following the United Kingdom, Sweden has become the second European country – and the first in the EU – to prohibit network operators from using Huawei technology in their 5G products. Sweden has also given Huawei until January 1, 2025 to remove any equipment that has already been deployed.
A Swedish court affirmed the ruling of the Swedish Post and Telecommunications Authority (PTS) in June 2021, despite Huawei’s appeal. Sweden-China relations have been harmed as a result of the ban. PTS’s decision, Beijing warned at the time, might have “consequences” for Swedish businesses doing business in China.