Nokia Exits Mainland China After 42 Years of Operation

The Finnish telecommunications company Nokia is shutting down virtually all of its mainland China operations by December 31, 2026. The move ends a 42-year commercial presence and includes the closure of facilities in Beijing, Shanghai, Chengdu, and Qingdao, as well as a major research center in Hangzhou that employs 1,600 engineers.

The exit follows a 58% decline in Greater China revenues between 2018 and 2025, with the company's 5G market share falling below 3%. Executives attributed the collapse to competitive pressure from domestic rivals Huawei and ZTE, alongside indications that the company was being excluded from the market on national-security grounds.

To facilitate the wind-down, Nokia bought out state-owned China Huaxin's stake in the Nokia Shanghai Bell joint venture for 4.1 billion yuan in late 2025. The company is now redirecting capital toward India and the United States, committing $4 billion to expand U.S. production. While the shift is expected to reduce costs, analysts warn that the exit closes a critical data channel for training AI-RAN systems required for the upcoming 6G standard.