Ericsson doubles down on next-gen networks to power physical AI

China will remain one of Ericsson's important markets as the Swedish telecoms equipment maker doubles down on next-generation mobile networks as a key enabler of artificial intelligence and physical AI in the country, a senior executive said at the ongoing 2026 Summer Davos.

Chafic Nassif, head of Ericsson Northeast Asia and senior vice-president at Ericsson, said: "China's combination of scale, speed of execution and innovative industrial ecosystem make it a uniquely critical market in the global technology landscape."

Speaking in an interview with China Daily at the 2026 Summer Davos, also known as the 17th Annual Meeting of the New Champions, in Dalian, Liaoning province, Nassif said that there are only a few countries globally that are as forward-leaning as China — probably none at the same scale.

He said: "Scale is one thing. The second is the ability to be at the forefront of technology. The third is the R&D capability, from universities through to applied research."

"China is important to us and the world. And moving forward, it will continue to be even more important," he added.

Ericsson, which has long positioned itself as an infrastructure provider across global markets, sees China not just as a commercial opportunity but as a key arena for technological evolution in AI-driven connectivity.

"We see ourselves playing a very big role in driving AI and physical AI moving forward," Nassif said. "To be a credible player in that evolution, we have to be where it is happening."

His comments come as global technology supply chains fragment under geopolitical pressure, with increasing scrutiny on cross-border cooperation in semiconductors, telecommunications and AI.

"There is a lot of geopolitics happening, and different countries are closing in on themselves," he said. "I hope that is not going to be the strategy in China. We believe strongly in openness and diversity."

Ericsson, he added, views collaboration as central to long-term innovation in connectivity technologies.

"We believe very heavily in diversity, and it is very important that we continue to foster deep collaboration for the betterment of industries and ultimately humanity," Nassif said.

China's telecom and digital ecosystem, he said, stands out for its ability to rapidly industrialise new technologies.

"It is a phenomenal and unique market. It is always mind-boggling how scale works in China, and even more impressive how fast the speed of execution is," he said.

He pointed to China's early nationwide deployment of 5G Standalone networks as an example of its infrastructure-first approach. "China was the first to roll out 5G Standalone across the whole country from the beginning," he said.

That momentum, Nassif said, is now extending into next-generation networks and AI-native communications systems.

"The formula is the same. We are now looking ahead to 6G, which will be AI-native," he said. "We are starting to collaborate with Chinese companies in this space."

He added that so-called physical AI — artificial intelligence embedded in robotics and autonomous systems — will play a growing role in industrial transformation.

"We already see companies like Unitree and others driving that economy forward," he said, referring to Chinese robotics firms. "We also see companies coming very close to autonomous driving, including BYD and Xiaomi."

For Ericsson, China's innovation ecosystem — spanning universities, research institutes and manufacturing supply chains — remains central to its global strategy.

"That is China's unique capability: the ability to industrialize at massive scale," Nassif said.

Despite geopolitical uncertainty, he expressed optimism that collaboration would continue to deepen.

"We have very positive hope this will continue and even grow," he said. "We hope China continues to foster openness, because we want to continue working together for the evolution of our industries."

Contact the writers at chengyu@chinadaily.com.cn