Technology developed by China telecom Huawei won't be permitted on Sweden's 5G network, it says owing to fears about national security.

Sweden is preparing for a spectrum auction to sell off rights to broadcast on certain frequencies. They will give service providers until January to phase out any Huawei equipment they use.

Huawei's expulsion is "to ensure that the use of radio equipment in these bands does not cause harm to Sweden's security," a representative for the authority said in a statement.

When considering applications during the spectrum auctions, the Swedish Post and Telecom Authority must consult with Sweden's military and security apparatus.

"China is one of the greatest threats to Sweden," said Swedish security service chief Klas Friberg, noting the covert means by which the China Communist Party collects data and steals technology from countries around the world.

"The Chinese state carries out cyber espionage in order to promote its own economic development and to develop its military capability...This is something we have to take into account as the 5G network is being built."

As in the U.S., Huawei's Swedish banishment will be a boon for competitors like Finnish Nokia and Sweden-headquartered Ericsson, who currently command 14 and 15 5G networks in Europe respectively. Huawei in contrast runs more than 45.

The European Competitive Telecommunications Association criticized the ban on Huawei goods and denounced it as a geo-politically motivated move that can only be justified based on well-established facts.

"[We] warn against the adverse consequences that the elimination of specific suppliers will have on consumer and business interests," the group of challenger telecom companies said in a statement.