Ericsson and Nokia at risk of being excluded from Chinese mobile network market due to national security concerns

Telecom giants Ericsson and Nokia are at risk of being excluded from the Chinese mobile network market due to "national security" concerns, according to Nokia's head of mobile networks division. Currently, they hold a 3% combined market share in China, dominated by local players ZTE and Huawei. Ericsson's revenue from China dropped to 4% in H1 2025, down from 5% in the previous year. Nokia advocates for a symmetric response from the EU, adopting a strict stance towards Chinese rivals, particularly Huawei.

Telecom giants Ericsson and Nokia are on the brink of being excluded from the Chinese mobile network market due to "national security" concerns, according to Nokia's head of mobile networks division, Tommi Uitto [1]. Currently, the two companies hold a combined market share of approximately 3% in China, where local players ZTE and Huawei dominate [2].

Uitto, speaking ahead of the official opening of Nokia’s new R&D and production facility in Oulu, Finland, warned that the exclusion of Western suppliers from the Chinese market is inevitable. He noted that the market share of western suppliers in China has been declining steadily over time, leaving Nokia with around 3% market share [1].

Ericsson's share of revenue from China shrank to 4% in the first half of 2025, down from 5% during the same period the previous year [2]. In light of these developments, Uitto advocates for a symmetric response from the European Union, urging the bloc to adopt an equally strict stance towards Chinese rivals, particularly Huawei.

Nokia CEO Justin Hotard also pressed the EU to act against high-risk vendors, revealing he discussed the situation privately and in Brussels during his first few months in the role [1]. Hotard urged the European Commission to loosen competition rules to allow for more innovation, pointing to the varying sizes of each country in the bloc.

"Some markets here are very small, based on the size of the country and the population. There just isn’t sufficient scale to support the capital deployment, the capital necessary to buy spectrum and capital necessary to operate a network and that constrains innovation," Hotard said.

Hotard will officially open the Oulu campus later today (5 September), alongside Finnish President Alexander Stubb.

References:
[1] https://www.mobileworldlive.com/ranvendors/nokia-mobile-boss-warns-of-looming-china-ban/
[2] https://www.marketscreener.com/news/ericsson-and-nokia-face-exclusion-from-chinese-market-warns-executive-ce7d59d9db88f323