(CTN News) – A reliable source has revealed that Huawei, the Chinese telecommunications giant, is set to commence construction of its mobile phone network equipment factory in France in the coming year.
This marks Huawei’s first manufacturing plant in Europe, despite certain European governments imposing restrictions on the use of the company’s 5G technology.
According to the source, Huawei had initially planned to invest 200 million euros ($215.28 million) in the factory in 2020. However, due to the COVID-19 pandemic, the project was postponed.
The source, who preferred to remain anonymous due to lack of authorization, shared this information on Monday.
No specific timeline for the operationalization of the factory in Brumath, near Strasbourg, was provided by the source. Furthermore,
Huawei has not yet responded to requests for comments on this matter.
It is noteworthy that this development occurs amidst the backdrop of certain European governments imposing restrictions or outright bans on the utilization and China’s ZTE equipment, citing security concerns.
European leaders are currently engaged in discussions on how to both mitigate risks and foster cooperation with China, the world’s second-largest economy. China ranks as France’s third largest trading partner, following the European Union and the United States.
In the year 2020, the French government informed telecom operators who intended to purchase Huawei 5G equipment that they would not have the option to renew licenses for the gear upon expiration, thereby gradually eliminating Huawei from mobile networks.
However, after a meeting between French Economy Minister Bruno Le Maire and China’s Vice Premier He Lifeng in Beijing in July, it was announced that France had chosen to extend 5G licenses in certain cities.