Synopsis : China has moved to restrict the use of European telecom suppliers Nokia and Ericsson by subjecting their contracts to secretive security reviews. State buyers are demanding higher local content and detailed documentation, raising hurdles for foreign vendors.
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China is stepping up restrictions on foreign telecom suppliers Nokia (Finland) and Ericsson (Sweden), according to a report by the Financial Times. The development signals Beijing’s intent to tighten control over its domestic telecom infrastructure and limit reliance on non-Chinese vendors.
Citing people familiar with the matter, the report says that all contracts from Nokia and Ericsson must now undergo “black box” national security reviews conducted by the Cyberspace Administration of China (CAC). These reviews are highly opaque, with companies not informed about the criteria or methods used to assess their equipment.
Additionally, state-owned telecom buyers are now demanding extensive documentation from bidders, requiring a breakdown of every component in their systems along with details on the proportion of locally sourced content. These requirements significantly increase compliance burdens for foreign suppliers.
Neither Nokia nor Ericsson has issued a comment on the report, while the CAC has also not responded to media queries.
The move comes amid intensifying global tech rivalries, with Western nations tightening restrictions on Chinese telecom giant Huawei, while China appears to be applying pressure on European vendors in response. Analysts suggest this could accelerate the shift toward domestic alternatives in China’s telecom sector.
Disclaimer : This article is for informational purposes only and should not be taken as investment or financial advice. Readers are advised to conduct their own research or consult a professional before making business or investment decisions.
