Earlier this week, Huawei announced that it work be investing 200 million Euros to build a telecommunications equipment factory in France. This arrives despite the French government curbing the use of its 5G networking gear.
According to a Reuters report, the new site will initially employ 300 people, which will eventually grow to 500 in the longer term. Furthermore, the products manufactured in the plant will go to Huawei’s European customers. The Chinese tech giant has considered the plans for a factory in the region since back in March, regardless, of the French government’s crack down against telecom operators that used its equipment.
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The factory is also a part of the company’s initiative to tone down the concerns and allegations against it, which began with the US. At the moment, various governments worldwide consider Huawei and other Chinese telecom equipment providers as a risk to their national security due to possible ties with the Chinese government. The US accused the company of espionage and being a front for Beijing, which Huawei has denied on multiple occasions.
Currently, France has not outright banned mobile telecom carriers from using Huawei’s networking gear. Although, the authorities did announce to network operators the bought the Chinese firms equipment, that they would not be able to renew their license for the gear once they are expired back in July 2020. This effectively phases out Huawei’s equipment from the country’s mobile networking infrastructure.
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