Rumors are emerging out of China that Ericsson is looking to make an acquisition, and the most likely candidates include UT Starcom or Harbor Networks. Shanghai Daily cites China Business News (CBN) as the source of this speculation. Apparently, Ericsson’s President and chief executive officer, Carl-Henric Svanberg, revealed last Friday in South China’s Guangzhou city that his company is engaged in talks concerning an acquisition in China. Harbor is a rival of Huawei, and has been feeling the competitive pressures of the market. UTStarcom, once a gravity defying network equipment maker has hit the skids, and I wonder if buying either of the two is a smart strategy for Ericsson.