[Asia Economy Beijing=Special Correspondent Park Sun-mi] Huawei, China's largest telecommunications equipment company, is establishing its first 5th generation mobile communication (5G) component factory in Europe, located in France. This decision comes amid ongoing US sanctions against Huawei, with the strategic intent to supply components produced in France to the entire European region.
According to the Hong Kong South China Morning Post (SCMP) on the 28th, Huawei's Chairman of the Board, Liang Hua, held a press conference in Paris on the 27th (local time) and announced the construction of a 5G component factory in France with an initial investment of 200 million euros (approximately 260 billion KRW).
Chairman Liang explained, "The components produced at this factory will be supplied not only to France but also to the entire European market," adding, "Huawei's operations are global, and for this, we determined that a global industrial space is necessary." He further stated, "The establishment of the 5G component factory in France will create about 500 new jobs in the local community and generate approximately 1 billion euros in added value annually."
This factory will be Huawei's first in Europe and will serve as an advanced base targeting the entire European market, becoming the largest factory outside China.
Huawei's announcement of the French factory construction came as the US continues to claim Huawei's 'spy activities' and strives to limit Huawei's operational scope. While maintaining sanctions against Huawei, the US is also pressuring its European allies not to allow Huawei equipment in their 5G infrastructure development.
Although France intends to prioritize European companies such as Nokia and Ericsson, it has not officially declared the exclusion of Huawei. Particularly, since French telecom operators have currently applied to the telecommunications regulatory commission for approval to use Huawei's 5G equipment, there is analysis that Huawei's decision to build a factory in France may be a calculated move to overcome US restrictions and gain approval from European authorities.
Meanwhile, on the same day, the US Senate unanimously passed a bill, following the House of Representatives, banning the purchase of Huawei equipment considered a national security threat with federal funds. The bill is expected to take effect after being signed by President Donald Trump.
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