World

China’s Telecom Shake-Up: How Beijing’s New Rules Could Impact Nokia and Ericsson

China restricts Nokia and Ericsson telecom gear, affecting market share amid security reviews and local demands.

October 2, 2025, 12:47 AM

The modern skyline of Beijing at dusk, with the China Zun and CCTV Headquarters buildings standing out

An urban landscape of Beijing's central business district with its distinctive skyscrapers lit up against the twilight sky. By MDL.

Executive Summary

China is reportedly restricting the use of European telecommunications equipment from Nokia and Ericsson within its networks.

Contracts for Ericsson and Nokia are now subject to “black box” national security reviews by the Cyberspace Administration of China and demands for extensive local content documentation.

This policy aligns with Beijing’s goal for self-reliance in critical technologies, potentially impacting European suppliers’ market share in China.

The Story So Far

The reported restrictions on European telecom equipment come amid a global environment of heightened scrutiny over telecommunications infrastructure and supply chain security, aligning with China’s broader strategic goals to enhance indigenous technological capabilities and reduce dependence on foreign suppliers by focusing on self-reliance in critical technologies.

Why This Matters

The reported restrictions on European telecommunications equipment from Nokia and Ericsson in China, driven by national security reviews and local content requirements, signal a strategic move by Beijing to enhance technological self-reliance and favor domestic suppliers, which could significantly erode the market share of these global firms in a crucial market and exacerbate the challenges foreign technology companies face within China’s evolving regulatory and geopolitical landscape.

Who Thinks What?

China, through its Cyberspace Administration of China, is implementing national security reviews and demanding local content documentation for telecommunications equipment, aiming to enhance indigenous technological capabilities and reduce dependence on foreign suppliers.

European suppliers Nokia and Ericsson are reportedly subject to “black box” national security reviews and extensive local content requirements, which could significantly impact their market share in China.

China is reportedly restricting the use of European telecommunications equipment from suppliers Nokia and Ericsson within its networks, according to a recent report by the Financial Times. The move suggests a potential shift in Beijing’s procurement policies, impacting two major global telecom infrastructure providers.

National Security Reviews and Local Content Requirements

Contracts involving Sweden’s Ericsson and Finland’s Nokia are now subject to “black box” national security reviews by the Cyberspace Administration of China (CAC). The companies are reportedly not informed about the assessment criteria or the outcomes of these reviews.

State-owned telecom equipment buyers are also said to be demanding extensive documentation from bidders, detailing every component in their systems and the proportion of local content. This requirement could favor domestic Chinese suppliers over international ones.

Nokia and Ericsson have not yet commented on these developments. The Cyberspace Administration of China was also not immediately available for comment.

Broader Context of China’s Tech Landscape

This reported policy comes amidst a global environment of heightened scrutiny over telecommunications infrastructure and supply chain security. China has been increasingly focusing on self-reliance in critical technologies.

The emphasis on local content and national security reviews aligns with Beijing’s broader strategic goals to enhance indigenous technological capabilities and reduce dependence on foreign suppliers.

Implications for European Suppliers

Should these restrictions be widely implemented, they could significantly impact Nokia and Ericsson’s market share in China, a crucial market for global telecom companies. It underscores the challenges foreign technology firms face in navigating China’s evolving regulatory and geopolitical landscape.