China's 5G base installations slow as U.S. parts dry up

Headwinds in leading market force suppliers to explore greener pastures

20211019N China 5G base station

Workers set up a 5G network base station in Fenggang, China. The country accounts for 60% of the world's 5G market. (cnsphoto via Reuters)

SHIN WATANABE, Nikkei staff writer

DALIAN, China -- China's campaign to build up fifth-generation wireless infrastructure has lost steam as manufacturers here run out of U.S.-made components, forcing suppliers to make further inroads into the American and European markets instead.

China makes up more than 60% of the global 5G market, and parts production there closely keeps pace with base installation in the country. Output of base station parts fell 53% on the year in the January-August period, and has shrank for 11 straight months for which data is available, according to China's National Bureau of Statistics.

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