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Sweden is banning Huawei and ZTE from its 5G networks

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Swedish regulators are banning the China-based tech companies Huawei and ZTE from constructing the infrastructure of Sweden’s 5G networks. The announcement follows previous bans this year against Huawei in the United States and the United Kingdom, fearing that the Chinese government-run companies will jeopardize their national securities if they construct their respective 5G high-speed networks.

The Swedish Post and Telecom Authority (PTS), announcing the news in a Tuesday press release, said that the four companies jockeying for licenses to build up 5G in the nordic country are prohibited from using equipment from Huawei and ZTE on national security grounds. According to the PTS, these updated conditions to receive a license was informed by assessments made by the Swedish Armed Forces and the Swedish Security Service.

“New installations and new implementation of central functions for the radio use in the frequency bands must not be carried out with products from the suppliers Huawei or ZTE,” the authority stated.

“The licence holder shall take necessary technical and organizational actions to safeguard that the radio use according to the licence does not cause harm to Sweden’s security,” the PTS added.

Understanding that some bidders for the license may already use products from both Chinese tech suppliers, the telecom authority added the caveat that license holders must phase out the reliance on such products.

“If existing infrastructure for central functions is to be used to provide services in the concerned frequency bands,” the press release said, “products from Huawei and ZTE must be phased out 1 January 2025 at the latest.”

Additionally, “if central functions are dependant of staff or functions placed in foreign countries,” the statement continued, “such dependencies must be phased out and, if necessary, be replaced by functions or staff placed in Sweden. This must be completed by 1 January 2025.”

According to the Associated Press, Huawei responded to the news, saying that it was “surprised and disappointed” by the change.

As for the rest of the European Union, a similar ban on Huawei appears less likely. Back in January, however, the European Union passed legislation that limits Huawei’s role on the continent and to make its 5G network more independent. The U.S. has been adamantly lobbying the E.U. to introduce a similar hard ban, but many E.U. member states have disagreed with how to tackle Huawei and 5G.

You can follow Douglas Braff on Twitter @Douglas_P_Braff.

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Electric Vehicle company with Chinese ties awarded $500 million of taxpayer money for 2nd U.S. plant

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With a little help from their Democrat friends, a Chinese electric vehicle (EV) battery company with ties to the Chinese Communist Party just announced the opening of its second plant in the United States.

Fox News reports Gotion Inc., whose parent company Gotion High-Tech is based in Hefei, China, unveiled plans to build a $2 billion lithium battery plant in Manteno, Illinois, alongside Democratic Gov. J.B. Pritzker, who cheered the project.

The announcement comes amid growing opposition to the company’s plans to build a billion-dollar factory in Mecosta County, Michigan.

In order to make the expansion happen, lobbyists for the Chinese Communist Party-tied electric vehicle company funneled cash to Democrats. “Individuals at a law firm registered as foreign agents to lobby on behalf of Gotion, a Chinese electric vehicle battery company developing a controversial project in Michigan, and wired campaign contributions to several top Democrats” reports Fox News.

“According to state and federal filings, Monique Field-Foster, an attorney at the Lansing office of the Warner Norcross + Judd law firm who is acting as a foreign agent on behalf of Gotion, donated to the campaigns of Democratic Gov. Gretchen Whitmer, Whitmer’s sister Liz Gereghty and Michigan Democratic Senate hopeful Rep. Elissa Slotkin” the Fox News report continued.

“In partnership with the business community and the General Assembly, two years ago we set out to make Illinois a destination for electric vehicle and clean energy companies from across the globe,” Pritzker said in a statement.

“With the right incentives, nation-leading infrastructure, world-class workforce and booming clean energy production, we have transformed ourselves into an attractive location for global manufacturers. Today, we take another leap forward. It’s my pleasure to welcome Gotion to Illinois and to show the world yet again that Illinois is ready to be a player on the world stage.”

Pritzker delivered remarks late last week thanking Gotion for choosing Illinois to call “home” in a ceremony with leaders from Gotion High-Tech, including Li Zhen, the company’s chairman and president, who said he expected the factory to open in less than 12 months.

“All that we see here [in Illinois] are of enormous value to us: an enabling business environment, a supportive state government for the new energy industry and their highly efficient work, as well as the prospects of the State of Illinois in the coming years,” the Gotion president added. “We believe that Gotion’s battery technology will help to boost e-mobility in North America and the economic and trade exchanges between China and the U.S.”

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