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The Wallenberg family has had good connections at a high level in China for decades, they own a number of heavyweight Swedish companies that have the country as an important market. His investment firm Investor owns mobile operator Tre together with Hong Kong-based CK Hutchison of China.
Jacob Wallenberg himself, one of the three cousins of the troika who leads the sphere, is vice president of Ericsson, which has managed to secure 5G orders in China.
But your worst competitorThe Chinese Huawei has been blacklisted for supplying equipment for new mobile technology in Sweden. This has led to legal proceedings and another postponed 5G auction.
Photo: Roger Turesson
– There are two dimensions here: Ericsson and Huawei have a longstanding interest in collaborating, to develop different standards so that the same technology can be used around the world. That is why we must have a relationship with China, that is absolutely central.
– At the same time, each country should be able to decide where it wants to draw its security limits, but here it is important to find a balance and stopping Huawei is not a good thing. It is important that Huawei has the opportunity to operate in Sweden, as well as in other countries.
Does Säpo believe that China is participating in cyber espionage?
– You must represent them. I don’t want to go in and comment on national security issues.
Do you see any steps towards what we in the West call democracy in China?
– I see two different things. On the one hand, there are clear signs that they are going in the other direction, it is deeply regrettable, on the other hand, I heard that Swedish companies are getting a fairer treatment now than before.
Why should we continue to trade with China?
– I firmly believe that trade and openness benefit economic development, hundreds of millions of Chinese have risen out of poverty. At present, there is also an important exchange of technology between companies in the Western world and companies in China. We have nothing to gain from confrontation, but we must uphold our values. This is a challenge and for Sweden we have the specific Gui Minhai consular case, which the EU has also raised.
– The Chinese also realize that they must engage with the world community as part of the country’s development, in order to conduct trade and for other countries to invest. Hope it can lead to positive development.
Photo: Roger Turesson
You only need to list a few of the major Swedish industrial companies (Saab, Atlas Copco, Ericsson, Husqvarna, Astra Zeneca, Electrolux and ABB) to realize the influence of the Wallenberg family. The sphere has been a power factor since 1856, when what is now the SEB bank was born. You speak of yourself as your own ecosystem:
Power is based on 16 foundations, with assets of approximately SEK 150 billion. Through the investment companies FAM and Investor, the money is invested in listed and unlisted companies, the dividend from them goes back to the foundations. The largest of these alone, the Knut and Alice Wallenberg Foundation (KAW), donates approximately SEK 2 billion a year to Swedish research.
Today, the family is led by brothers Jacob (President Investor) and Peter (President of KAW) and Cousin Marcus (President of FAM and SEB). Where are they headed right now?
Jacob Wallenberg responds by talking about a seminar this fall. 225 people – the president and the management teams of companies with FAM or Investor as main owners discussed the future for 3.5 hours:
– Our message was that sustainability and digitization are the two most important issues to ensure the long-term competitiveness of companies. It is absolutely crucial how we manage to work with climate goals and how we use digitization, artificial intelligence and other new technologies. Our competitors around the world are purposefully investing in this and we want to be part of the match.
And how can this be more than pretty words?
– We must be at the forefront of the development curve, be competitive and, of course, deliver. With their innovative power, companies have a key role to play in climate management. We have now established a vision and will follow through to make the goals a reality. But we cannot turn everything around in one night, this is a process.
In an interview with DN in March, Jacob Wallenberg praised the quick action of the government at the start of the pandemic. Today it says:
– You may have opinions about the people, but the government has acted vigorously to prevent the collapse of businesses. I have great respect for everyone in the health sector, I am proud that it has worked in our country. The Crown Commission has shown a number of things that we could have done better as a country, now we have to learn from them and move on.
President Jacob Wallenberg in the Investor studio, one of the family’s power companies.
Photo: Roger Turesson
Has the pandemic changed the way you assess risk?
– Yes, in the sense that we talk much more about the so-called black swans, unexpected events that have unanticipated consequences. One risk factor we saw during the pandemic was relying on a single manufacturer in supply chains.
What could be the next black swan?
– The world central banks have added an enormous amount of liquidity, which has led to extremely low interest rates. What does it mean in the form of increased inflation risk for businesses and consumers when interest rates start to rise? That dynamic can become a big problem.
KAW contributed SEK 260 million to save SAS together with the Danish and Swedish governments. But as a result, the foundation’s ownership share has been cut in half and the share’s value has been significantly eroded.
Bet wise?
– Absolutely. We are a small country on the outskirts of Europe, we are completely dependent on being in contact with the rest of the world. Having an airline based on the needs of Scandinavians is absolutely critical to our ability to compete.
And then another airstrip is needed at Arlanda?
– Yes, it is a prerequisite for us to cope with the travel pressure in the future if Bromma is closed. It’s not necessary today, but since it can take 10-15 years with an environmental permit, we should start discussing.
But Arlanda is really just one detail in the remodeling of the entire infrastructure and energy investments that Jacob Wallenberg believes are necessary:
– Sweden does not get a place with more goods on the railway, it is about equipping highways, ports, it is a big problem to move in the Stockholm area and so on. We must be able to invest in parallel in several different projects.
– Because we have competition, for example Copenhagen and southern Sweden are becoming much more dynamic. Denmark is building a tunnel that will take it from Copenhagen to Hamburg in two and a half hours in eight years. There, they are investing a lot forward based on a clear vision, whereas we don’t have the same collection in Stockholm and Sweden at all.
In the past, only one person, until now always a man, in the Wallenberg family single-handedly singled out his successor. Today, there is a task force to form a bridge between the fifth and sixth generations. According to a poll conducted by Dagens Industri earlier this fall, there are 31 people in the pool of potential successors. 13 of them already have assignments in one of the foundations.
Photo: Roger Turesson
– We say they are happy to get involved but must qualify. It takes relevant education and experience, but it must also engage your heart and be passionate about the assignment, says Jacob Wallenberg, who will turn 65 next year.
Will the next generation also be led by more than one?
– I absolutely believe that it is absolutely necessary with the complexity with which we work. And of course there will be women among them.
The three sons sit on tables, two of them work in the sphere. What if one of them took over?
– As a parent, I would think it would be fantastic, as one of the leaders, I would claim the right person in the right place. It’s about doing what’s best for individual companies and the ecosystem, not for you as an individual.
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