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Class Editori News

Huawei to invest $3.1 billion in Italy

July 16, 2019


Abstract : Huawei is ready to invest $3.1 billion in the next three years, creating 1,000 new jobs.

Abstract: Thomas Miao, Huawei’s CEO for the Italian segment, announced the tech giant’s three-year investment plan, involving $1.2 billion in marketing & operations, $1.9 billion in direct procurements, and around $52 million in R&D. 1,000 new jobs created in view of the investments, plus a further 2,000 in related industries.

MILAN, Jul 15 (Class Editori) – Huawei is ready to invest $3.1 billion in the next three years, creating 1,000 new jobs. The information comes from the CEO of Huawei Italy, Thomas Miao, who explained the company’s investment plan during an event in Milan, as the tech giant touched base on the last 15 years of activity in the country. The businessman has also requested the Italian authorities with higher transparency and a just application of so-called “Golden Power” policies in regard to 5G.

In further detail, the Chinese giant will invest over $1.2 billion in marketing & operations, $1.9 billion in direct procurements, and around $52 million in R&D. 1,000 new jobs created in view of the investments, plus a further 2,000 in related industries.

While planning for investing in Italy, Huawei is now considering cutting hundreds of jobs in the US, at least according some sources close to the Dow Jones Newswires agency. Redundancies are mainly found in Huawei’s US research center, and those employed by subsidiary Futurewei Technologies. The division’s staff is comprised of around 850 people working in a number of different US states – including Texas, California, and Washington.

Yet, Miao has required “transparent, efficient and just” rules for Golden Power policies enforcement in regard to 5G. “At the moment, the decree limits non-EU suppliers only,” he said. “It should apply to everybody, because technology is impartial and not related to geopolitics issues. 5G is very important, and the Golden Power should regard to all players – for ensuring the creation of a safe and reliable infrastructure from day one. Getting ready before launch is one of the country’s biggest needs”.

Thomas Miao expressed his concerns regarding the timeframe for the evaluation of risks and of national security potential violations as outlined by the Golden Power decree on 5G – raised to 165 days. “It shouldn’t take this long for the approval” of the agreements between suppliers and operators, complained Miao.

The decree, passed a few days back, increased the timeframe for performing an appropriate assessment of risks and of national security potential violations from 25 to 165 days. Furthermore, the decree states that “the government can order the acquiring company and the eventual counterpart to restore the former state of things at their own expenses”. And that whoever does not abide by the reporting requirements “shall be subject to an administrative fine of up to twice the operation’s worth and, in any case, no less of 1% of the operation’s worth”.

Meanwhile, Huawei is receiving good news from the other side of the ocean. According to a US source from Reuters, in the next two-four weeks Washington should start issuing licenses to North American companies interested in restarting business with Huawei – showing that US President Donald Trump’s recent opening on loosening the restrictions in place against the Chinese tech giant could see the light quicker than expected.

In May Huawei had made it into the “entity list” of US Department of Commerce, and, since then, local companies have been prevented from supplying American goods and services to the group without getting a government license first. Yet, coming the end of last month and following the meeting with Chinese President Xi Jinping in Japan, Trump announced that American companies may be allowed to sell to Huawei again. In the last few days Wilbur Ross, the Secretary of Commerce, notified that, in the absence of threats to national security, they were going to start issuing said licenses.

Trump’s change of course, together with the fast-paced implementation pursued by the Department of Commerce, links back to the pressure mix coming from the chip industry and the Chinese politics, and could contribute to restart US tech sales in Huawei’s favor. Out of the £70 billion dollars Huawei spent for parts in 2018, $11 billion went into US companies’ pockets – including Qualcomm, Intel, and Micron Technology.

(Source:Class Editori, all rights reserved))

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Keyword: Huawei

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