Why did Trump praise Nokia if it is outsourcing American jobs?

Why did Trump praise Nokia if it is outsourcing American jobs?
No, not that Nokia. The one that the Finns kept is a telecom equipment powerhouse, and one of the few options for the US to wean off its dependence on the value-for-money Huawei gear. 

While rural carriers (or T-Mobile) are warning that it won't be easy (or soon) finding alternatives to Huawei's base stations and other mobile network equipment, the White House administration is pushing ahead with its agenda to divest from Chinese-sourced gear on the basis of national security interests trumping over the free market economy creed.

There are only a handful of companies that can replace Huawei's telecom equipment, all of which are a worse proposition when it comes to value. Scandinavian companies like Nokia and Ericsson are the ones most likely to reap the benefits from the bans and tariffs levied on Chinese juggernauts like Huawei or ZTE, as the US simply doesn't have comparable technology and it will take a while to get there.

In the meantime, the next best thing is a company like Nokia that has 14,000 employees in the US, and which President Trump praised during a recent meeting with the Finnish president:


The thing is, however, that in order to stay marginally competitive, Nokia has to wean itself off high-paying jobs in countries like the US, and move the development, production and services of its 4G/5G gear to countries like India, where the next big mobile revolution is shaping up. What's also shaping is higher import tariffs on stuff that is not made in India, so Apple and Samsung already built factories to make handsets there, and Nokia is following suit with its networking equipment now. 

What does that mean for American workers employed by Nokia? Well the Communication Workers of America's Telecommunications & Technologies Vice President Lisa Bolton puts it succinctly:


Needless to say, this statement will probably fall on deaf ears, at least until Huawei is used as a giant pawn in the ongoing trade and tariff negotiations between the US and China. While leveling the playing field with Beijing has been long overdue, there's bound to be some collateral damage on the way there, and highly paid American jobs, in addition to higher equipment prices, may be it, no matter how the White House feels about the longer run. Or, it could just be a union thing.

FEATURED VIDEO

13 Comments

1. jellmoo

Posts: 2654; Member since: Oct 31, 2011

Because he's not very bright?

2. VariableCheapskate

Posts: 191; Member since: May 29, 2019

Because it clearly pisses off left leaning hack journalists such as yourself?

5. AngelicusMaximus

Posts: 753; Member since: Dec 20, 2017

So you're saying the right loves outsourced American jobs then?

10. Vogue1985

Posts: 490; Member since: Jan 24, 2017

Well they are the elite,they own most of the major companies, so if it saves them money well do it,outsource food,outsource job,outsource cheap labour,everything.

7. threeline

Posts: 320; Member since: Sep 11, 2011

Seems you're the one pissed off.

11. Vogue1985

Posts: 490; Member since: Jan 24, 2017

Talk about a primitive mind,the world is flat or in scat brain left right this that crap,its not flat ,we understand it hard for you to believe.

3. hemedans

Posts: 761; Member since: Jun 01, 2013

Phonearena, Bell is laboratory, it consist of bright mind, you cant just move scientist like them to other countries. And Nokia Has Automated factories, They can place them everywhere without worrying about labor cost.

4. inFla

Posts: 173; Member since: Aug 17, 2018

Mr. Petrov, we don't care about your political leanings.

6. AngelicusMaximus

Posts: 753; Member since: Dec 20, 2017

If you read the article, you'd know he doesn't discuss his political leanings at all, but even if he did, you have the option to simply not click or visit another website completely.

8. kiko007

Posts: 7520; Member since: Feb 17, 2016

You ever notice the only time the phrase "political leanings" is used its a Trump stooge spouting it? You can't even point out the orange f**k's hypocrisy without his mindless legion getting ansy.

12. Vancetastic

Posts: 1710; Member since: May 17, 2017

Even if one falls on the conservative side of the political spectrum, I fail to see how one could possibly support the idiot. Talk about sheep....

9. Cherylnh85

Posts: 5; Member since: May 24, 2019

More and more "US jobs" (employees physically based in United States) especially in high technology industries are staffed by non-Americans via employer sponsored VISA programs. These programs keep employer costs and wages lower while providing less benefit overall to the American economy and American workers.

14. Gawain

Posts: 448; Member since: Apr 15, 2010

None of the major carriers in the US have Huawei switchgear on their networks. Huawei has some installs with some smaller regional carriers, but that's it. Neither Huawei nor ZTE have a major presence in the US. This whole article is messed up. CWA has been trying to get Nokia employees unionized since forever, and they aren't having it. CWA is full of it.

Latest Stories

This copy is for your personal, non-commercial use only. You can order presentation-ready copies for distribution to your colleagues, clients or customers at https://www.parsintl.com/phonearena or use the Reprints & Permissions tool that appears at the bottom of each web page. Visit https://www.parsintl.com/ for samples and additional information.