Media: Beijing cuts reliance on Nokia, Ericsson

Beijing is tightening restrictions on the use of European telecom suppliers Nokia and Ericsson, as President Xi Jinping pushes to reduce the country’s reliance on Western technology.

Chinese state-backed buyers, including mobile operators, have begun placing foreign bids under stricter review, with contracts now sent to the Cyberspace Administration of China for lengthy checks that can take three months or more, Caliber.Az reports, citing Financial Times.

Even when approvals are granted, the process leaves European vendors at a disadvantage compared to domestic rivals.

Analysts estimate that Nokia and Ericsson’s combined share of China’s mobile network market fell to around 4% in 2024, down from 12% in 2020, while both companies reported declining revenues in the country.

Meanwhile, Chinese giant Huawei continues to expand its business presence in Europe.

China has long pursued a strategy of technological self-reliance, especially in critical sectors such as telecommunications and semiconductors.

Western restrictions on advanced chip exports and growing geopolitical tensions have accelerated Beijing’s efforts to strengthen domestic champions like Huawei and ZTE, while reducing opportunities for foreign suppliers.

For European firms such as Nokia and Ericsson, China has historically been both a large market and a challenging environment, with shrinking market share reflecting Beijing’s policy shift toward prioritising national security, data control, and indigenous innovation.

By Khagan Isayev