Finnish telecommunications equipment manufacturer Nokia plans to close nearly all of its factories in mainland China by the end of the year, the South China Morning Post reports, citing informed sources.
According to the sources, the company will lay off the majority of its employees in the country. As of the end of 2025, Nokia had a workforce of about 7,200 people in China, Hong Kong, and Taiwan.
A Nokia spokesperson noted that the company’s business in China has been declining in recent years and that it plans to restructure its operations in the country. The company did not provide 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 companies purchasing equipment—including mobile operators—are required to submit contracts with these companies to China’s Cyberspace Administration for review in the context of national security. The review can take three months or more, and even if the decision is favorable, European players find themselves at a disadvantage compared to their Chinese competitors.
Nokia’s stock price fell nearly 6% on Tuesday. Since the beginning of the year, its market capitalization has jumped by more than 60%, to 53.58 billion euros.
