The Financial Times reported on the 1st that as China pushes to decouple from the West in key technology infrastructure, it is placing restrictions on the use of products from European telecom equipment suppliers Nokia and Ericsson in its telecom networks.
The report stated, according to two sources familiar with the matter, China's government-backed IT equipment purchasers—including mobile network operators, utilities, and other industries—have begun to more closely analyze and regulate bids from foreign companies.
During the bidding process, contracts involving Finland's Nokia and Sweden's Ericsson must be submitted to the Cyberspace Administration of China for a "black box" national security review. Bidding companies are unaware of how their contracts are evaluated during this process.
The sources said that now Chinese buyers require bidding companies to provide detailed documentation on each component of their systems; foreign companies even list details of research and development done in China in their documents in attempts to enhance their competitive edge.
The Cyberspace Administration of China's review process may take three months or more. The sources indicated that even if European companies ultimately receive approval, the lengthy and uncertain review often puts them at a disadvantage when competing with Chinese rivals, who are not subject to such scrutiny.
Nokia, Ericsson, and the Cyberspace Administration of China did not respond to requests for comment.