Huawei to Build Network Equipment Factory in Europe

China and Huawei will begin building a mobile network equipment factory in France next year, according to sources familiar with the matter. The company had planned to grow in 2020 with an initial investment of 200 million euros ($215.28 million), but the launch was delayed due to the COVID-19 pandemic, sources said on Dec 11. They declined to be named because they were not authorized to comment on the matter.  The sources did not say when the plant in Brumas, near Strasbourg, would become operational.

Huawei did not respond to a request for comment. The move comes as some European governments ban or ban the use of equipment made by Huawei, China and ZTE, citing security concerns. European leaders are also debating how to "de-risk" and cooperate with the world's second-largest economy. China is France's third largest trade partner behind the European Union and the United States.

In 2020, the French government told telecom operators planning to buy Huawei 5G equipment that they would not be able to renew licenses for the gear once they expire, effectively phasing Huawei out of mobile networks. But following a meeting with French Economy Minister Bruno Le Maire in Beijing in July, China's Vice Premier He Lifeng said France had decided to extend Huawei 5G licenses in some cities.