The Finnish parliament is expected to approve the bill designed to protect mobile networks from cyber threats and espionage in a session expected to begin Monday afternoon in Helsinki.
The proposed legislation does not identify any specific companies or countries, but bans equipment as a major asset of the network if there are strong grounds to suspect that the use of such equipment will endanger national security.
Johannes Koskinen, a member of the ruling Social Democratic Party in Finland, said: When asked about the law being directed against Chinese companies: We are not pointing fingers at any party.
“We must make sure that we do not take action that closes the doors to Nokia as a result of any backlash.”
In neighboring Sweden, where telecoms equipment maker Ericsson is based, a similar law has caused a dispute with China.
For Nokia, things are complicated, as it may lose its presence in China, which is a huge market for fifth generation network equipment, but it may achieve Profits to be made from mobile networks as their Chinese competitors are excluded.
Nokia CEO Pekka Lundmark said last October that Nokia had calculated that it had earned about 43 percent of the deals it had struck since several countries banned Chinese sellers.
He also recognized the importance of the Chinese market, and said: The company is ready to give up some of its short-term profits in exchange for a market share in the fifth generation networks, something the company has resisted under its previous management.
A team of government officials and representatives of major telecom companies is asked to assess the security of mobile networks from a national security perspective.
The responsibility for determining the technical specifications of what constitutes the main assets in the network rests with the Finnish Transport and Communications Agency.
The Finnish legislator Koskinen, who has served as justice minister in three governments, said: The industry is developing rapidly and we may soon see an Indian, Korean, Japanese or American company in the market, each with its own national interests.