For this vignette of a recent episode of the Futurum Tech Webcast, Part of the 5G Factor series, analysts Shelly Kramer and Ron Westfall provide their perspectives on Ericsson’s decision to divest its product research and development activities in Nanjing, China by November 2021.  

Their conversation covered:

• Ericsson now has four R&D centers after the Nanjing R&D center divestment resulting in the apparent transfer of over 600 employees to TietoEVRY, a Finnish software provider with offices in China.
• How the move coincides with Ericsson’s market share loss to China-based rivals like Huawei and ZTE in China’s domestic 5G market.
• Why the decision of Ericsson’s leadership to remain committed to the China mobile market is a strategically sound one as China is the global leader in 5G deployments today and is a key testbed for emerging 5G applications and capabilities.
• Why geopolitical tensions and China’s recent economic and trade decisions may diminish China’s own mobile ecosystem and standing over the long term.

Shelly and Ron agree that doing business in China is becoming increasingly tricky today as developments such as new Edtech market regulations and Jack Ma’s reduced presence are indicators that deal-making across the China tech market, including the 5G and mobile sections. will become more challenging.