Ericsson shares fall as Beijing retaliation looms – MENAFN.COM

SourceMENAFN
SectorFinancial Markets
CountryMiddle east

(MENAFN – Asia Times) You might say Ericsson has a big problem in China, but that would be putting it nicely. The company’s fears of becoming a geopolitical football have largely come true. Global tensions over 5G equipment have put the Swedish telecom company under pressure in a key market, with a significant decline in Chinese business in the second quarter of 2021 weighing down otherwise strong financial results.

Shares in the telecom equipment giant — a rival to the likes of Nokia and Huawei — fell more than 8% in Stockholm, Barron’s reported . Ericsson’s Nasdaq -listed shares paralleled declines in the US premarket. Ericsson, the world’s second-largest cellular-equipment maker behind China’s Huawei, has benefited in much of the world from US-Chinese tensions over technology. Washington and several of its allies have restricted use of Huawei’s equipment in their respective countries, while sales elsewhere were buoyed by rising demand for 5G equipment, the report said. But in China, it...read more...