Ericsson's 5G march hits a wall in China

Ericsson is on a roll.

Everywhere except China.

The Swedish telecoms gear maker said Friday (July 16) that sales of 5G equipment were strong across most of the world.

It's just signed a deal with Verizon worth $8.3 billion - its biggest ever.

But it's a different story in China.

Ericsson says it's no longer banking on winning contracts there.

It's previously warned that sales in the country could fall foul of Sweden's ban on gear from Chinese firm Huawei.

Now it says second-quarter sales in China were down by $290 million - their first such drop in three years.

Overall group revenues fell short of forecasts as a result.

It's all a sharp contrast to arch-rival Nokia.

The Finnish firm said this week that it would probably raise its outlook for the year after a better-than-expected second quarter.

Ericsson shares tumbled over 8% following Friday's news.