Nokia has received government approval to merge its four manufacturing joint ventures in China, a move that is expected to set an example for other multinationals, a great number of whom want to integrate their businesses in China amid stiff competition.

Nokia plans to merge its four joint ventures into a new entity, which will be operational in January, said David Tang, vice-president of Nokia (China) Investment Company last week. The restructuring involves a 50-50 joint venture between Nokia and China's handset maker Capitel; a telecoms gear manufacturing company in Beijing; a plant in Dongguan, in Guangdong Province; and a joint venture in Suzhou, in Jiangsu Province.

Nokia filed the necessary applications for the merger last January, and obtained approval from all relevant local governments in June. The central government issued its preliminary approval in August.

The firm will be based in Beijing, and Nokia will hold more than a 60% of share, while the four Chinese partners will have stakes in the company, which will produce mobile phones and network equipment.