To fight Huawei, the United States may form an alliance with Ericsson and Nokia

People familiar with the matter have revealed that the Trump administration plans to convene a cabinet meeting on the 28th of this month to discuss new measures to restrict exports to Huawei. At the same time, it has recently been reported that the US Attorney General has called for extraordinary measures to counter Huawei's dominant position in 5G technology.

According to Reuters, U.S. Attorney General William Barr said on the 6th ET that the United States and its allies should consider adopting extraordinary measures, including gaining control of Nokia and Ericsson, as a countermeasure Huawei's dominant position in 5G technology.

At the meeting, William Barr suggested that the United States consider investing in Ericsson and achieve an alliance by acquiring a controlling stake. He also said, "Using our huge market and financial strength to support one or two companies will make them a stronger competitor."

The shareholders of Ericsson have shown considerable interest in this proposal. It is reported that Cevian Capital, a shareholder holding 8.4% of Ericsson, welcomed the company's partners to point out that any Ericsson management committee should regard any US offer as the "highest priority." If the deal is concluded, it will be beneficial to Sweden, Ericsson and even shareholders.

On the other hand, Larry Kudlow, a White House economic adviser, and U.S. Vice President Burns both objected to the proposal on Friday, but the potential deal has not yet been completely rejected.