Nokia reportedly moved closer to offloading its stake in China-based Huawei joint venture TD Tech, with local media revealing the proposed consortium of buyers included a pair of state-owned entities.   

South China Morning Post (SCMP) reported China’s State Administration for Market Regulation has already concluded it has no concerns about the proposed transaction and opened the proposal for public feedback.

Under the latest deal, Huawei would own the business alongside a group comprising Chengdu Hi-Tech Investment Group, Chengdu Gaoxin Jicui Technology and private investment company Huagai Capital.

The deal is Nokia’s latest attempt to dispose of an asset it previously described as being a legacy joint venture it has no operational activities with.

In 2023, the Finnish vendor struck a deal with New East Materials to sell its stake in TD Tech. However Huawei was extremely critical of the choice, stating it had no willingness or possibility to operate the business with the proposed new partner.

New East Materials announced the cancellation of the proposed buy in December 2023.

TD Tech was formed in Beijing in 2005, initially to build 3G systems for the Chinese market.

It now creates and supplies a range of industrial-focused systems and devices including specialist IoT modules.       

SCMP noted despite Nokia holding a 51 per cent share, the venture was effectively controlled by Huawei.