European 5G equipment makers Nokia and Ericsson have signed contracts with all three major telecommunication companies in China during the country's ongoing import expo.
Nokia revealed that its contracts together are worth 15.7 billion yuan (around 2.24 billion U.S. dollars), while Ericsson didn't disclose the number.
With the 5G switch on for general users since November, Chinese carriers are eager to expand their coverage across the country and attract more subscribers to their fan base. So they have to buy more equipment for the expansion.
Like all other enterprises, the Chinese carriers, namely China Mobile, China Unicom and China Telecom, are trying to avoid putting all their eggs in the same basket. They decided to buy equipment from all major suppliers including foreign ones to create competition.
Although no supplier can be perfect, especially when it comes to security, the Chinese carriers can reduce the risk by diversifying its list of vendors.
But for U.S. carriers, they have lost two big vendors from China – Huawei and ZTE – because of a ban from the U.S. government.
The ban not only limited the choices of carriers, but also put them on higher risk if security breaches are exposed.
Can the U.S. protect itself from security risks with Chinese suppliers ousted? Or Can the Chinese carriers stay safe with foreign vendors? Voice your opinion on CGTN Digital's social media pages and feel free to email tech@cgtn.com if you have a lot to say.