US Vice President Mike Pence and the top White House economic adviser on Friday dismissed a suggestion from US Attorney General William Barr that the US should consider taking control of two major foreign rivals of China-based Huawei Technologies Co (華為).
Barr, a former general counsel at Verizon Communications Inc, on Thursday said that the US and its allies should consider taking a “controlling stake” in Finland’s Nokia Oyj and Sweden’s Ericsson AB to counter Huawei’s dominance in next-generation 5G wireless technology.
White House economic adviser Larry Kudlow on Friday said that the US was working closely with Nokia and Ericsson and the companies’ equipment was essential to the buildout of 5G infrastructure.
However, the “US government is not in the business of buying companies, whether they’re domestic or foreign,” Kudlow said, adding that “there’s nothing to prohibit American tech companies from acquiring” them.
Pence earlier in the day had suggested an alternative approach when asked by CNBC for his response.
“Great respect to Attorney General Barr, but we believe the best way forward is what Ajit Pai announced just over the last several days,” Pence said, referring to the US Federal Communications Commission chairman’s efforts to free up more spectrum for 5G wireless use.
“That’s the plan the president has endorsed and will be carrying forward,” Pence said, adding that the US can expand 5G “by using the power of the free market and American companies.”
Nokia and Ericsson have a combined market capitalization of about US$53 billion.
Barr said in a statement on Thursday that the alignment with Nokia and/or Ericsson could take place “through American ownership of a controlling stake, either directly or through a consortium of private American and allied companies.”
“Putting our large market and financial muscle behind one or both of these firms would make it a far more formidable competitor and eliminate concerns over its staying power, or their staying power,” he said.
“We and our closest allies certainly need to be actively considering this approach,” Barr added.
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