Finnish telecommunications equipment manufacturer Nokia plans to close almost all of its factories in mainland China by the end of the year. This was reported by the South China Morning Post (SCMP), citing informed sources.
According to sources, the company will reduce a significant portion of its workforce in the country. By the end of 2025, Nokia's staff in China, Hong Kong, and Taiwan numbered around 7,200 people.
A Nokia representative stated that the company's business in China has been declining in recent years, and the company plans to reassess and align its operations in the country. No further details were provided by the company.
Last year, the Financial Times reported, citing sources, that China restricts the use of technologies from Finnish Nokia and Swedish Ericsson in telecommunications networks. Specifically, companies purchasing state-owned equipment, including mobile operators, are required to submit contracts with these companies to China's cybersecurity administration for review in the context of national security.
The review can take three months or more, and even with a positive decision, European companies find themselves at a disadvantage compared to their Chinese competitors.
