Nokia’s move to sell a majority interest in joint venture TD Tech it operates with Huawei was met with opposition, with the China vendor arguing proposed buyer New East Materials lacks the appropriate capabilities.

In a statement, Huawei said it doesn’t have “any willingness or possibility” to jointly operate TD Tech with New East Materials, noting the JV with Nokia is based on the strategic cooperation between the two companies, their technical strengths, and their global sales and service capabilities.

While Huawei said Nokia has the right to sell its stake, the buyer “must have the same strategic capabilities” as the foundation for continuing the existing cooperation.

Nokia lined up New East Materials, a maker of ink and adhesive products, to acquire its 51 per cent stake for CNY2.1 billion ($305 million), Yicai Global reported.

TD Tech is a provider of industrial IoT networks and connectivity technologies.

Nokia didn’t respond to an email query.