According to a person acquainted with the situation, Huawei, a Chinese company, will begin constructing its mobile phone network equipment factory in France the following year. This would allow Huawei to move forward with its first plant in Europe, even though certain European countries restrict its use of 5G equipment.
The COVID-19 epidemic caused the roll-out of the facility to be delayed, according to a source who spoke to the media on Monday. The business planned to construct the factory in 2020 with an initial expenditure of 200 million euros, equivalent to $215.28 million. They said they would not be willing to be recognized because they are not authorized to talk on this topic.
According to the source, no timetable is provided for when the factory in Brumath, located close to Strasbourg, will be operational. A request for a response was sent to Huawei, but they did not answer. According to a source within the French government, the location was anticipated to open in 2025.
Even though certain European countries have restricted or outright prohibited the use of equipment manufactured by Huawei (HWT.UL) and ZTE (000063. SZ), citing security concerns, this step has been taken.
In addition, European leaders are discussing how to “de-risk” their economies while working with the world’s second-largest economy. China is France’s third-largest trading partner, with the United States and the European Union as its two main trading partners.
The French government announced in 2020 that telecommunications companies planning to buy Huawei 5G equipment could not renew their licenses for the equipment once they had expired. This essentially eliminated Huawei from the mobile network market.
Nevertheless, China’s Vice Premier He Lifeng stated that France had decided to extend Huawei’s 5G licenses in some locations after meeting with the French Minister of Economy Bruno Le Maire in Beijing in July.
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