December 11 News - According to Reuters citing three people familiar with the matter, due to the slow progress of 5G technology in Europe and the increasingly tough stance of some European governments on restricting or banning Chinese telecommunications equipment including Huawei's, Huawei is considering selling a newly completed factory in eastern France.

Europe Plans to Fully Ban Chinese 5G Equipment on the Grounds of "Security"

In recent years, under the guidance and pressure of the United States, European countries have become increasingly worried about the security threats posed by telecommunications equipment from China and other countries being used in their network infrastructure. Especially during the first term of the Trump administration, after the United States began to ban 5G equipment from Chinese telecommunications equipment manufacturers such as Huawei, allied countries including Australia, New Zealand, the United Kingdom, and France also began to follow suit.

In August 2018, Huawei Australia Branch issued a statement through its official Twitter account announcing that Australia had banned Huawei and ZTE Corporation from supplying equipment for its planned 5G network. Huawei stated that this was an "extremely disappointing result for consumers."

In November 2018, New Zealand telecommunications operator Spark said that the New Zealand Government Communications Security Bureau had rejected Spark's proposal to use Huawei's 5G equipment in its network on the grounds of significant national security risks.

On July 14, 2020, the British government suddenly announced that, based on security considerations, it would ban the purchase of new telecommunications equipment from Huawei starting from December 31, 2020. In addition, Huawei equipment currently in use in Britain's 5G network must be removed by 2027.

Around the time Huawei announced plans to build the factory in France in February 2020, the United States had repeatedly warned its European allies not to allow Chinese companies to enter Europe's 5G infrastructure.

In July 2020, France officially announced that it would ban Huawei from participating in the construction of its 5G mobile network and planned to completely phase out Huawei's network equipment by 2028.

In October 2020, the Swedish Post and Telecom Authority (PTS), when announcing the conditions for the 5G spectrum auction, stipulated that any operator participating in the auction could not use 5G equipment from Huawei and ZTE, and required relevant equipment already in use in the network to be removed by 2025.

In November this year, according to Bloomberg News, the European Commission plans to force member states to gradually remove products from China's Huawei and ZTE from their operational network equipment.

Henna Virkkunen, Vice-President of the European Commission, hopes to convert the 2020 recommendation to stop using high-risk suppliers in mobile networks into a legally binding requirement. Although decisions related to infrastructure are in the hands of each member state's government, Virkkunen will propose that EU member states follow the security guidelines formulated by the European Commission.

Although countries such as Spain, Greece, Germany, and Finland still allow the installation of Chinese telecommunications equipment in their domestic telecommunications networks, they are also considering imposing stricter restrictions on Chinese suppliers, especially against the backdrop of the European Commission actively promoting mandatory exclusion of Chinese telecommunications equipment by member states.

German Chancellor Friedrich Merz recently appointed an expert committee to rethink trade policy with China and banned the use of Chinese components in future 6G networks.

Huawei Plans to Sell Its French Factory

On February 27, 2020, Huawei announced that it would establish a wireless product manufacturing factory in France, focusing on the production of 4G/5G wireless communication equipment and building a highly automated intelligent manufacturing factory. The products produced by this factory will mainly supply the European market.

The total planned investment of the factory is 200 million euros, which will be used for land, factory construction, equipment procurement, etc. The overall construction will be completed with advanced production equipment and tools from leading local European partners. It is expected that the project will bring an annual output value of 1 billion euros and create 500 direct jobs.

The latest reports show that Huawei's factory was completed in September this year, located about 20 kilometers north of Strasbourg, France, but is currently vacant. Two local officials and a senior business executive said that Huawei seems to have not yet decided whether to continue the construction of the factory, which is also Huawei's first factory in Europe.

However, as European countries have taken a tougher stance on excluding Chinese network equipment including Huawei's from their telecommunications infrastructure, and the European Commission has actively introduced mandatory measures to phase out Chinese telecommunications equipment, Huawei's newly completed 5G communication equipment factory may be useless.

Telecommunications consultant John Strand stated that Huawei's current market share of installed 4G and 5G equipment in Europe is estimated at 35%-40%, making it one of the top suppliers. But the growth rate is lower than expected, and some European governments have strengthened their stance on restricting or banning Chinese equipment.

"They have great ambitions and their product quality is excellent. However... security issues have hindered their ambitions," said Jean-Luc Beylat, Chairman of the French technology innovation agency Systematic Paris-Region and advisor to the telecommunications regulator ARCEP. He noted that the vitality of Europe's 5G market is not as expected, and the industry's adoption rate is lower than expected.

A local official who attended a meeting with Huawei in early November said that all options regarding the 52,000-square-meter factory are under discussion, but did not elaborate.

However, an informed business official said that these options may include selling the factory to external parties. He also added that several industrial groups have recently visited the site.

A senior executive who visited the factory with employees said that their understanding is that Huawei is unlikely to use the facility.

An official at the regional headquarters said that due to the uncertainty of the project, the original 800,000-euro subsidy approved by the government has been cancelled.

"We hope to attract Chinese investment to France while fully respecting sovereignty... Regarding telecommunications and strategic communications, we believe these matters fall within the scope of national sovereignty. Therefore, it is necessary for us to implement controls in this field, which is also Huawei's current situation in France," said a source from the French presidential office.

December 11 News - According to Reuters citing three people familiar with the matter, due to the slow progress of 5G technology in Europe and the increasingly tough stance of some European governments on restricting or banning Chinese telecommunications equipment including Huawei's, Huawei is considering selling a newly completed factory in eastern France.

Europe Plans to Fully Ban Chinese 5G Equipment on the Grounds of "Security"

In recent years, under the guidance and pressure of the United States, European countries have become increasingly worried about the security threats posed by telecommunications equipment from China and other countries being used in their network infrastructure. Especially during the first term of the Trump administration, after the United States began to ban 5G equipment from Chinese telecommunications equipment manufacturers such as Huawei, allied countries including Australia, New Zealand, the United Kingdom, and France also began to follow suit.

In August 2018, Huawei Australia Branch issued a statement through its official Twitter account announcing that Australia had banned Huawei and ZTE Corporation from supplying equipment for its planned 5G network. Huawei stated that this was an "extremely disappointing result for consumers."

In November 2018, New Zealand telecommunications operator Spark said that the New Zealand Government Communications Security Bureau had rejected Spark's proposal to use Huawei's 5G equipment in its network on the grounds of significant national security risks.

On July 14, 2020, the British government suddenly announced that, based on security considerations, it would ban the purchase of new telecommunications equipment from Huawei starting from December 31, 2020. In addition, Huawei equipment currently in use in Britain's 5G network must be removed by 2027.

Around the time Huawei announced plans to build the factory in France in February 2020, the United States had repeatedly warned its European allies not to allow Chinese companies to enter Europe's 5G infrastructure.

In July 2020, France officially announced that it would ban Huawei from participating in the construction of its 5G mobile network and planned to completely phase out Huawei's network equipment by 2028.

In October 2020, the Swedish Post and Telecom Authority (PTS), when announcing the conditions for the 5G spectrum auction, stipulated that any operator participating in the auction could not use 5G equipment from Huawei and ZTE, and required relevant equipment already in use in the network to be removed by 2025.

In November this year, according to Bloomberg News, the European Commission plans to force member states to gradually remove products from China's Huawei and ZTE from their operational network equipment.

Henna Virkkunen, Vice-President of the European Commission, hopes to convert the 2020 recommendation to stop using high-risk suppliers in mobile networks into a legally binding requirement. Although decisions related to infrastructure are in the hands of each member state's government, Virkkunen will propose that EU member states follow the security guidelines formulated by the European Commission.

Although countries such as Spain, Greece, Germany, and Finland still allow the installation of Chinese telecommunications equipment in their domestic telecommunications networks, they are also considering imposing stricter restrictions on Chinese suppliers, especially against the backdrop of the European Commission actively promoting mandatory exclusion of Chinese telecommunications equipment by member states.

German Chancellor Friedrich Merz recently appointed an expert committee to rethink trade policy with China and banned the use of Chinese components in future 6G networks.

Huawei Plans to Sell Its French Factory

On February 27, 2020, Huawei announced that it would establish a wireless product manufacturing factory in France, focusing on the production of 4G/5G wireless communication equipment and building a highly automated intelligent manufacturing factory. The products produced by this factory will mainly supply the European market.

The total planned investment of the factory is 200 million euros, which will be used for land, factory construction, equipment procurement, etc. The overall construction will be completed with advanced production equipment and tools from leading local European partners. It is expected that the project will bring an annual output value of 1 billion euros and create 500 direct jobs.

The latest reports show that Huawei's factory was completed in September this year, located about 20 kilometers north of Strasbourg, France, but is currently vacant. Two local officials and a senior business executive said that Huawei seems to have not yet decided whether to continue the construction of the factory, which is also Huawei's first factory in Europe.

However, as European countries have taken a tougher stance on excluding Chinese network equipment including Huawei's from their telecommunications infrastructure, and the European Commission has actively introduced mandatory measures to phase out Chinese telecommunications equipment, Huawei's newly completed 5G communication equipment factory may be useless.

Telecommunications consultant John Strand stated that Huawei's current market share of installed 4G and 5G equipment in Europe is estimated at 35%-40%, making it one of the top suppliers. But the growth rate is lower than expected, and some European governments have strengthened their stance on restricting or banning Chinese equipment.

"They have great ambitions and their product quality is excellent. However... security issues have hindered their ambitions," said Jean-Luc Beylat, Chairman of the French technology innovation agency Systematic Paris-Region and advisor to the telecommunications regulator ARCEP. He noted that the vitality of Europe's 5G market is not as expected, and the industry's adoption rate is lower than expected.

A local official who attended a meeting with Huawei in early November said that all options regarding the 52,000-square-meter factory are under discussion, but did not elaborate.

However, an informed business official said that these options may include selling the factory to external parties. He also added that several industrial groups have recently visited the site.

A senior executive who visited the factory with employees said that their understanding is that Huawei is unlikely to use the facility.

An official at the regional headquarters said that due to the uncertainty of the project, the original 800,000-euro subsidy approved by the government has been cancelled.

"We hope to attract Chinese investment to France while fully respecting sovereignty... Regarding telecommunications and strategic communications, we believe these matters fall within the scope of national sovereignty. Therefore, it is necessary for us to implement controls in this field, which is also Huawei's current situation in France," said a source from the French presidential office.