The report, citing people familiar with the matter, said that contracts from Sweden’s Ericsson and Finland’s Nokia must now undergo “black box” national security reviews by the Cyberspace Administration of China (CAC). The reviews reportedly offer no transparency to the companies, as they are not informed how their equipment is assessed or what criteria are applied.
Heightened Procurement Requirements
Under the new rules, Chinese state buyers of telecom equipment are also requiring bidders to provide highly detailed documentation on every component in their systems, along with disclosures on the proportion of local content. Analysts say such requirements could complicate procurement for foreign vendors and create competitive advantages for domestic suppliers such as Huawei and ZTE.
Industry Silence
Neither Nokia nor Ericsson responded to Reuters’ requests for comment, while the CAC could not be reached immediately. Both companies have long faced pressures in the Chinese market, where state-backed rivals dominate and political considerations often influence procurement.
A Broader Context
The move comes at a time of heightened technological decoupling between China and Western economies. Beijing has been promoting self-reliance in critical infrastructure, while Western governments have in turn restricted Chinese telecom giants from their own networks, citing national security concerns.
For Nokia and Ericsson, which have invested heavily in 5G infrastructure worldwide, the tighter scrutiny may limit opportunities in one of the largest telecom markets on the planet. Industry observers say the latest measures highlight the geopolitical risk facing global telecom suppliers as national security increasingly shapes technology trade.