Sweden’s Ericsson denies exiting China market despite 5G equipment competition from Huawei, geopolitical tensions
- Ericsson says it is ‘committed’ to mainland Chinese customers, after local media reported that the firm is pulling out
- The company noted in its most recent financial report that uncertainties in the Sino-Swedish relationship is a major business risk
Swedish telecoms equipment giant Ericsson denied that it is withdrawing from the China market, even as local rivals including Huawei Technologies pose growing challenges in the country’s 5G equipment industry.
Ericsson said it “remains committed to its customers in mainland China”, after local media reported that the company is exiting the country, where it has been losing ground to domestic giants.
Huawei’s domestic competitor ZTE came in second, winning about 26 per cent of the contracts. Ericsson, in third place, shared the remaining 22 per cent of contracts with China’s Datang and Finland’s Nokia.
Ericsson also faces rising geopolitical uncertainties in China, after Stockholm banned network operators from using Huawei equipment to build Sweden’s 5G network.
The company noted in its most recent financial report that uncertainties in the Sino-Swedish relationship is a major risk factor in its operations. “Further changes in economic and political policies in or relating to China” may “have a material adverse effect on the company’s business”, Ericsson wrote.
