Huawei has built its first European manufacturing plant in France as a way to ease tensions regarding the use of its 5g equipment globally. The company's chairman revealed that it would invest millions of euros in the first phase of the mobile base station plant.

The Chairman of Huawei Liang Hua announced that it would create its first European manufacturing plant in France. He claimed that Huawei would invest a total of 200 million euros during the first phase in creating its mobile base station plant. The project was also revealed to generate 500 jobs in the region.

At present, Huawei faces scrutiny after the United States warned European nations in welcoming the Chinese tech giant's services into its state. Huawei has constantly denied these allegations and claimed that its equipment does not pose a security risk against nations.

The next-generation mobile technology would be supplied in the entire European market, Liang exclaimed in a news conference. He added that Huawei's group activities are implemented globally and that it needs a global industrial footprint starting with its mobile base station plant in France.

The report claimed that 5g technology would be a stepping stone for states to acquire high-speed and high-capacity communications. It was said to improve mobile connections between billions of devices worldwide including driverless cars, smart refrigerators, and other technological equipment.

The announcement, however, did not reveal that the establishment of the mobile station plant in France had the support of French President Emmanuel Macron. The latter was said to have sought the help of foreign investors and warned against Chinese encroachment into the European Union's economy if Huawei services would be allowed in the region.

Liang then said that the plan to open the station in France is not a 'charm offensive' against the French government. The French were said to start rolling out its 5G networks, but one of its top mobile operators and state-owned entity Orange had already set its eyes on working with Ericsson and Nokia instead of Huawei.

Other operators doing business in France such as Bouygues Telecom and Altice Europe's SFR has urged the French government to clarify its position on welcoming Huawei into the country. These businesses were said to rely heavily on Huawei's services.

The French government has announced that it will not discriminate against any vendor operating in the country. However, it did layout plans on requiring suppliers to undergo a mandatory screening to ensure that their services comply with cybersecurity standards.