Huawei is relocating its US-based research center to Canada amid further threats from the US government.
The movement of the company’s research center comes less than a week after reports of further US crackdowns against the company got out. Chinese telecom and tech giant Huawei has had an unstable relationship with the US government over the last year. The US has labeled the Chinese company as a threat to national security and has sought to reduce their influence in the US. In an apparent response, Huawei announced recently that it will relocate its US research center to Canada.
Speaking to the Globe & Mail on Monday, Huawei founder and CEO Ren Zhengfei announced the relocation. Ren also discussed Huawei’s plans to manufacture mobile network equipment outside of Canada. As a part of those efforts, Ren plans to build new factory capacity in Europe. There, the company would then start producing 5G equipment. Ren also explained that the company’s activities in Europe should challenge the US-fanned fears that his company’s ultrahigh-speed wireless initiatives are being used as a spying tool by the Chinese government. The US government is preparing to slap Huawei with more sanctions stopping shipments containing US technology from reaching the company.
During the interview, Ren also revealed that his company had invested $510 million into its US research center during the last year. The center had also reduced its workforce from 600 employees down to just 250.