Nokia closes China research hub, recalls asking Europe why it uses Huawei
Nokia is closing its radio technology research hub in Hangzhou, China, resulting in 1,600 job cuts as its market share in the region continues to decline. The move highlights the growing geopolitical divide in telecommunications and the struggle of Western vendors in the Chinese market.
Why it matters
The exit reflects the broader decoupling of Western tech firms from China and the ongoing security tensions surrounding 5G infrastructure.
Nokia has confirmed it is winding down its radio technology research and development centre in Hangzhou by the end of 2026, cutting roughly 1,600 jobs and quietly closing the book on a China strategy that has been unravelling for the better part of a decade. Staff were told on Thursday, August 13. The company's explanation was clinical—it is aligning its China operations with how Nokia works globally, and its business there has been shrinking for years. Light Reading reports that Nokia sites in Beijing, Chengdu, Qingdao and Shanghai could follow, though the company hasn't confirmed that.What makes the timing interesting is the argument it revives. In September 2025, at a press conference in Oulu, Finland, Nokia CEO Justin Hotard asked Europe a question it still hasn't properly answered: "Why do we allow high-risk vendors in Europe in our networks," he said, when Nokia holds under 3% share in China?
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