Tech Giant Forges Ahead: Huawei Factory Rises in Europe Despite 5G Ban

The company will build a factory in Europe, even though some European governments are restricting the use of 5G network equipment made by Huawei

by Sededin Dedovic
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Tech Giant Forges Ahead: Huawei Factory Rises in Europe Despite 5G Ban
© David Ramos / Getty Images

Huawei, the Chinese technology giant, is set to start building a mobile phone factory in France next year, despite concerns and restrictions from some European governments over its 5G network equipment. This successful company has been trying to establish a foothold on the European market for a long time, despite political obstacles.

The planned factory, with an initial investment of 200 million euros, was originally announced in 2020. However, due to the global pandemic and its impact on supply chains, the launch has been delayed. Now that the pandemic has almost completely receded and economic activity is picking up, Huawei is poised to continue its European expansion plans.

Ban on using Huawei 5g equipment

Some governments, such as the UK and Sweden, have imposed outright bans on the use of Huawei equipment in their 5G networks, while others, such as France, have taken a more lenient approach.

In 2020, France announced that it would not renew the licenses for existing Huawei 5G equipment upon expiration, eventually pushing the company out of the 5G market. Recent developments indicate a softening of France's stance.

Following a meeting between French Economy Minister Bruno Le Maire and Chinese Vice President He Lifeng in July 2023, China announced that France had agreed to extend Huawei's licenses for existing 5G equipment in certain cities.

This is a potential shift towards France's more pragmatic approach. Huawei continued with the construction of the factory despite the 5G restrictions, which shows the company's confidence in the European market. The factory is expected to create new jobs and contribute to the local economy in France.

The company is keen to play a role in developing Europe's mobile infrastructure, even if its 5G ambitions are currently limited. Although the company faces significant political and technological obstacles, the coming years will be crucial in determining whether Huawei can overcome these challenges and establish itself as an important player in the European mobile environment. Judging by the current success, if there are no stumbling blocks, success is guaranteed.

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