Chinese tech giant, Huawei, is set to commence the construction of its mobile phone network equipment factory in France next year, according to an inside source.
The initial plan, outlined in 2020 with a 200 million euros ($215.28 million) investment, faced delays due to the COVID-19 pandemic. The source did not provide a specific timeline for the factory in Brumath, near Strasbourg, to be operational.
This move comes amid European governments restricting or banning the use of Huawei’s 5G equipment, citing security concerns. Despite such limitations, Huawei has continued to persist with its first European plant, signaling ongoing economic ties between China and France.
The French government had previously informed telecom operators that they could not renew licenses for Huawei 5G equipment, effectively phasing out the company from mobile networks. However, a meeting in July between French Economy Minister Bruno Le Maire and China’s vice premier He Lifeng has resulted in the extension of Huawei 5G licenses in certain cities, giving the tech giant some leeway.