China Impedes Ericsson's Growth to Favor Domestic Firms

Ericsson, recognized as Sweden's fourth-largest company by revenue, is encountering increasing geopolitical resistance in China. Recent reports indicate that the Chinese government is deliberately prolonging the bidding process for Ericsson and Finnish competitor Nokia through extensive security assessments, citing national security concerns, according to sources from the Financial Times.

These security reviews, conducted by the Cyberspace Administration of China (CAC) without transparency, require detailed information about local production percentages. The duration of these processes can extend for three months or longer, thereby providing a competitive edge to local rivals that are not subjected to the same scrutiny.

As a result, Nordic companies are rapidly losing market share in China. Although Ericsson does not disclose its performance in the Chinese market separately, analysts from the Dell'Oro Group report that the combined market share of Ericsson and Nokia in the network systems sector in China has plummeted from 12% in 2020 to just 4% in 2024.

This decline aligns with the announcement from Chinese leader Xi Jinping, who has expressed intentions to replace foreign technology in key sectors with domestic alternatives. Meanwhile, the European Union's response has been limited, allowing Chinese companies such as Huawei and ZTE to capture approximately 35% of the mobile infrastructure market in Europe, according to Dell'Oro Group analysis.

Despite the EU Commission imposing restrictions on Huawei and ZTE in 2020, as of June 2025, only 10 out of 27 EU member states had enacted similar measures, as highlighted by Cullen International. Currently, nearly 60% of Germany's 5G infrastructure is sourced from China.

In a notable instance, Börje Ekholm, Ericsson's CEO, was reported to have sent private messages to the then Minister for Trade, Anna Hallberg, in 2020, advocating for Huawei's involvement in Sweden's 5G rollout.

However, Sweden took a different route, implementing restrictions on Huawei's participation in its 5G infrastructure in 2020 following warnings from its security service, Säpo. Reports revealed that Ekholm attempted to influence the government to lift the ban on Huawei to safeguard Ericsson's business interests in China, where the company employs around 13,500 individuals.

In response to inquiries from DN, Ericsson refrained from commenting on the rumors or speculations surrounding its operations and market challenges.