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Ericsson to restructure China operations after sales plunge

State-owned network operators favor ZTE and Huawei after Swedish 5G block

Ericsson recorded a 74% drop in Chinese revenues in the third quarter from a year before.   © Reuters

TOKYO -- Swedish telecommunication equipment maker Ericsson plans to restructure its operations in China, its second-largest market, after its sales in the country plunged for a second consecutive quarter in the wake of its home government's move to exclude Huawei Technologies and ZTE from 5G mobile networks.

"As a consequence of the loss in sales in China, we have to right-size our sales and delivery organization in China, and that will start in the fourth quarter," said Borge Eckholm, Ericsson's president and chief executive, during the company's results presentation on Tuesday.

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