Finnish telecoms equipment manufacturer Nokia plans to close almost all of its factories in mainland China by the end of the year, according to the South China Morning Post, citing informed sources.
According to the sources, the company will lay off the majority of its staff in the country. At the end of 2025, Nokia’s workforce in China, Hong Kong and Taiwan totalled around 7,200 people.
A Nokia spokesperson noted that the company’s business in China has experienced a downturn in recent years and that it plans to restructure its operations in the country. The company did not provide any further details.
Last year, the Financial Times reported, citing sources, that China was restricting the use of technology from Finland’s Nokia and Sweden’s Ericsson in telecommunications networks. In particular, state-owned enterprises purchasing equipment – notably mobile operators – are required to submit contracts with these companies to the Cyberspace Administration of China for review in the context of national security. The review process can take three months or more, and even if a positive decision is reached, European players find themselves at a disadvantage compared with their Chinese competitors.
Nokia’s share price fell by almost 6 per cent on Tuesday. Since the start of the year, its market capitalisation has risen by more than 60 per cent, to €53.58 billion.