Currently, Ericsson has handset and mobile network equipment joint ventures in both Beijing and Nanjing. Its handset operations in Nanjing are to be sold and the network equipment manufacturing resources will be transferred there from Beijing.

Sony Ericsson is to set up its own unit in China this year, but it has not released details of its investment plans. The joint venture has set itself ambitious plans to become the world’s largest handset maker in five years.