The warning was included in an updated prospectus for investors related to Ericsson's issue of a 500 million euro ($610 million) unsecured 8-year bond.

Ericsson said while it had been invited to various ongoing tender processes in China, the final outcome remains uncertain.

"It is the company's current assessment that the risk has increased that Ericsson will in those tenders be allocated a significantly lower market share than its current market share," it said in a statement.

The Swedish government last October banned Huawei from supplying 5G equipment due to security concerns. Huawei sued to overturn the decision and a decision is expected in the next few weeks, potentially impacting Ericsson's prospects in China.

($1 = 0.8201 euros)

(Reporting by Supantha Mukherjee in Stockholm; Editing by Simon Johnson)