Connect with us

Subscribe

Asia

Huawei Announces $3 Billion Investment in Italy

The controversial Chinese telecommunications giant says its investments will create thousands of jobs in Italy.

splinternet huawei russia 5g internet
A Huawei official speaks on stage at the launch event for the Mate 8 smartphone on January 28, 2016. (Image Credit: Isriya Paireepairit)

Chinese telecommunications firm Huawei said on Monday that it plans to invest close to $3.1 billion in Italy over the next three years. The investments, it claims, would add at least 1,000 jobs in the European country, as well as another 2,000 in sub-contractual positions.

The investment plan was announced in Milan by Huawei Italy chief Thomas Miao, who outlined that $1.9 billion would be spent on the acquisition of supplies for new operations in Italy, $1.2 billion on marketing and other tasks, and $52 million on research and development.

Miao further stressed that the recent trade tensions between the United States and China were not having any adverse effect on the Huawei business in Italy at the moment. He added that Huawei would guarantee product supplies to trade partners despite the U.S. restrictions.

In May this year, the Trump administration added Huawei to a trade blacklist over concerns about the company installing spying software on American communication networks and conducting intellectual property theft in the country.

Huawei has denied the allegations, but since it depends on the purchase of critical components for its products from U.S.-based vendors, the blacklist appears to have hit the company. Though restrictions were eased earlier this month, Huawei has still announced hundreds of job cuts in the United States.

Huawei is the second-largest smartphone maker in the world and a leader in providing the latest fifth-generation (5G) of cellular network technology globally. Its 5G plans in the United States, United Kingdom, Australia, and Canada have been affected as a result of mounting U.S. pressure.

Despite the announcement from Huawei, the Italian government has in recent weeks moved legislation that requires foreign communication firms to get government approval before installing equipment in the country. Huawei has termed the laws discriminatory.

The legislation must be approved by the Italian parliament within two months or it will expire, reports news agency Reuters. Miao has urged the Italian government to apply the new rules to all vendors and expedite the approval process for foreign telecommunications equipment. 

As the United States urges allied countries to cut ties with Huawei, the company is making in other regions, including South Asia, Russia, and Europe. However, Huawei still faces an uphill task ensuring uninterrupted supplies of key telecom components ahead of the planned expansions.

Subscribe to Our Newsletter

By submitting your info, you agree to our terms of use.

Written By

Usman Kabir covers science, space, and technology for Globely News. As a kid, he would make models of the solar system and take part in water rocket competitions. His childhood obsession has led him to a degree in Space Science. Usman likes to spend his free time watching reruns of "Curb Your Enthusiasm" and "Seinfeld."

Chinese state control over technology companies Chinese state control over technology companies

Chinese Big Tech Still Sits in the Communist Party’s Sights

Asia

China russia allies xi putin China russia allies xi putin

After Putin: How Russia Might Rethink Its Alliance With China

Russia

China and corruption in Latin America China and corruption in Latin America

How China Uses Corruption to Influence Latin America

Americas

China in Latin America China in Latin America

China Expands Economic Reach Into U.S. Backyard

Americas

South Africa balancing Russia China and the US South Africa balancing Russia China and the US

How South Africa Balances China, Russia, and The West

Africa

How does China make its economic policies How does China make its economic policies

This Is How China Makes Its Economic Plans

Asia

What Russia's Ukraine war means for China What Russia's Ukraine war means for China

Why Ukraine War’s Outcome Matters for China

Europe

How China is responding to the political crisis in Pakistan How China is responding to the political crisis in Pakistan

China Is Worried About the Political Turmoil in Pakistan

South Asia

NEWSLETTER

By submitting your information, you are agreeing to our terms of use.

Connect
Subscribe to Our Newsletter

By submitting your info, you agree to our terms of use.