Huawei To Build First Euro Factory Despite EU Scrutiny


Chinese tech giant Huawei is to press ahead with plans for its first plant in Europe, despite increasing curbs by some of the continent’s governments and scrutiny by the European Union.

Huawei will start building its mobile phone network equipment factory in France next year, a source familiar with the matter said.

The company outlined plans for the factory with an initial investment of $215.28 million in 2020, but the roll-out was delayed by the Covid-19 pandemic, a source said on Monday. 

The source did not give a timeline for when the factory in Brumath, near Strasbourg, will be up and running. Huawei did not respond to a request for comment.


Also on AF: China Firms Rush to Poach Nvidia Clients With AI Chip Offerings


The move comes even as some European governments restrict or ban the use of 5G equipment made by Huawei and China’s ZTE, citing security concerns.

European leaders are also debating how to “de-risk” but also 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 telecoms operators planning to buy Huawei 5G equipment that they would not be able to renew licences 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 licences in some cities.


  • Reuters with additional editing by Sean O’Meara


Read more:

Huawei’s State-Backed Smart Car Firm Set For $35bn Valuation

Apple Outshone by Huawei, Xiaomi on China’s Singles Day

Huawei’s China Smartphone Sales Soar, Closes Gap on Apple

US Chip Export Ban Seen as Big Opportunity for Huawei



Sean O'Meara

Sean O'Meara is an Editor at Asia Financial. He has been a newspaper man for more than 30 years, working at local, regional and national titles in the UK as a writer, sub-editor, page designer and print editor. A football, cricket and rugby fan, he has a particular interest in sports finance.

Recent Posts

China’s GDP Growth Seen Slowing in the First Quarter

Analysts expect first quarter GDP will come in around 4.6% on Tuesday, which would be…

45 mins ago

Floods, Droughts, Earthquake, Big Freeze Cost China $3.3bn

China’s emergency management ministry said the country had also been hit by a drought, sandstorms…

21 hours ago

China Slams ‘Biased’ EU Over Electric Vehicle Imports Probe

A Chinese industry body chief said Brussels’ investigation was ‘tainted’ and stacked against his country’s…

23 hours ago

US Lawmakers’ Fury Over Huawei’s Intel AI Chip-Powered Laptop

Republicans have hit out at the Biden administration over continuing supplies of high-end American tech…

23 hours ago

Huawei Signals New High-End Smartphone After Mate 60 Success

Speculation has been growing for months about Huawei’s P70 model which is expected to be…

2 days ago

China Proposes New Trading, Listing Rules to Revive Market

China's Securities Regulatory Commission says it will bolster its supervision of company listings, delistings and…

2 days ago