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Huawei Technologies Co. Ltd. has disclosed plans to move its research center into Canada from its original location in the United States. The development was revealed to the press by, Ren Zhengfei, the founder of the Chinese telecom equipment manufacturer.
The remarks by Mr. Zhengfei have come on the heels of reports that the United States government was considering increasing its powers to stop additional shipments of foreign products with U.S. based technology to Huawei. The United States Commerce Department has already placed the Chinese tech giant on a trade blacklist since May, citing concerns over national security.
Mr. Zhengfei stated: “Huawei‘s center for research and development will be moved out of the United States. And that will be relocated to Canada.” He also said that the company would look to produce select mobile network equipment out of China.
Founder Aims for 5G Equipment Production Facility in Europe
The founder of Huawei also revealed that the company aims to build a new production facility in Europe for fifth generation 5G networking equipment, in the hopes of allaying fears arising from allegations by the United States, that the products of the company could be used by the Chinese government for spying purposes.
Huawei, was not available for comment about the statements made by Mr. Zhengfei. The company has already denied its role as a risk to United States national security. The firm has already spent USD 510 million for activities in its United States research branch in 2018. The company has revealed that it has cut down its workforce for the research activities from 600 to approximately 250.
In other developments, Huawei’s Chief Financial Officer, and Ren’s daughter Meng Wanzhou, who was arrested by the Canadian police on a United States warrant, on violating Iran sanctions and is currently out on bail.
The company has denied the charges, and the Chines government has been pushing Canada to release her. In comments on her case, Mr. Zhengfei stated that it was an obvious example of political interference by the United States.