Nokia to exit TD Tech joint venture with Huawei due to U.S.-China tensions
According to a January 21,2024 article in the South China Morning Post, Nokia is set to exit its joint venture with Huawei in the telecommunications sector due to US-China tensions. Nokia has found new buyers for its majority stake in a Beijing-based joint venture with Huawei Technologies, after a proposed deal fell through last year following strong protest by the Chinese partner. The article states that Nokia will sell its majority stake in TD Tech [1.] to a group that will be jointly controlled by Huawei and a group of entities that include the government-owned Chengdu High-Tech Investment Group and Chengdu Gaoxin Jicui Technology Co, as well as venture capital firm Huagai, according to a disclosure published on Friday by the State Administration for Market Regulation (SAMR).
Huawei had a 14% share in the Chinese smartphone market in the third quarter 2023, putting it in fifth place behind its spin-off Honor and rivals Oppo, Vivo and Apple, data from market intelligence firm Counterpoint Research showed. According to Statista, Huawei had a 58% share of all 5G base stations in China as of the 3rd quarter 2023. Its closest competitor was ZTE with a market share of 31%. Nokia had only a 2% market share.