Huawei Hopes to Win Over Europe With Plans to Build 5G Factory in France
After the U.S. government warned European nations numerous
times that the use of Huawei networking equipment poses a security risk, now it
appears Huawei is hoping to alleviate those fears with new plans to build a 5G
manufacturing facility in France.
According to Reuters, at a recent press conference, Huawei
Technologies Chairman Liang Hua said Huawei is looking to invest 200 million
euros (172 million pounds) to build a mobile base station plant that would
create 500 new jobs and supply not just France, but the entire European market
with 5G networking equipment.
A couple of weeks ago, the U.S. Justice Department announced
that it would unseal indictments against Huawei alleging that the company had
conspired to steal trade secrets, commit wire fraud and violate racketeering
laws. In response, Huawei claims the charges bought against the company are
unfounded and are merely protectionist moves meant to help U.S. businesses
while disparaging Huawei.
Despite urges to the contrary, major European allies to the
U.S. including the UK and Germany have stopped short of completely banning the
use of Huawei networking equipment, allowing local wireless operators to
continue using Huawei gear in some capacity.
At the press conference, Liang claimed: “This site will
supply the entire European market, not just France’s, our group’s activities
are worldwide and for this we need a global industrial footprint.”
However, just because Huawei wants to build a factory in
France, it’s currently unclear what impact that might have over potential
security concerns. While Huawei mentioned the creation of job, it did not
explicitly mentioned any changes to its core 5G tech and its uncertain if
French President Emmanuel Macron has signed off on the plan.
As a matter of policy, France says it will not discriminate
against any equipment vendors based on country of origin. However, France does
require all suppliers to be screened and vetted by its cybersecurity agency,
which is scheduled to check out Huawei’s tech. According to Reuters, sources in
the French telecom industry are worried that Huawei equipment will be barred
from used even if a formal ban doesn’t happen.
With the increasing need for faster wireless networks, 5G
technology has quickly become a battleground for many countries and
multi-national companies as they seek to upgrade infrastructure and promote
economic growth.
While France does not have any live 5G networks at the
moment, local carriers have already started preparing for the switch with
France’s largest carrier Orange having already committed to using 5G equipment
from Huawei’s European rivals Nokia and Ericsson in its network.
However, smaller carriers like Altice and Bouygues tend to
be more price sensitive, which makes Huawei’s 5G tech more attractive,
especially since a large part of the two carriers' existing 4G network is
powered by Huawei gear.
So while the U.S. may have hoped to convince its allies
overseas to shut Huawei out of Europe, even though Huawei plans to build a new
factory have not been approved, it seems Huawei is slowly turning the tide and
will at least main some semblance of a foothold in Europe.
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