Huawei investments contribute to EU economy

By Chen Qingqing and Song Lin Source:Global Times Published: 2019/11/5 20:43:43

Tech giant helps leapfrog many European countries to increase GDP

A Huawei Mate X user takes a photo. Photo: Courtesy of Huawei

Chinese technology giants have been devoted to cooperation with the EU in the digital economy and have made rising contributions, especial in 5G technology-related fields. Experts noted that companies like Huawei maintain a competitive-cooperative relationship with EU, which is beneficial for both sides.

Huawei contributed 12.8 billion euros ($14.24 billion) to Europe's GDP in 2018, with an average annual growth rate of 19 percent from 2014 to 2018, said a report from British think tank Oxford Economics on Monday.

According to data from the IMF, the 12.8 billion euros accounted for about 6.7 percent of EU member country Greece's 190.8 billion euro GDP in 2018 in constant prices. The figure was even higher than the total GDP of EU member country Malta in 2018.

Huawei sustained 169,700 jobs in the EU and supported the generation of 5.6 billion euros in tax revenues in 2018. The company has 23 research and development (R&D) institutions in 12 European countries and employs 2,400 people in R&D roles, of whom 89 percent are recruited locally, said the report.

William Xu Wenwei, president of Huawei's Institute of Strategic Research, said at its 7th annual Huawei European Innovation Day in France on Monday that with an almost 20-year presence in Europe, Huawei has joined 44 standards and industry organizations, and it has contributed to more than 2,000 research papers.

In terms of 5G, Huawei works with European partners to realize global harmonization of 5G standards through 5G Public Private Partnership, which defines the pace and direction of 5G basic research worldwide and promotes the development of the 5G industry, Xu said.

"Huawei is representative of the cooperation between Chinese private enterprises and European markets in the high-technology field, especially in the IT industry," Zhao Junjie, a research fellow at the Chinese Academy of Social Sciences' Institute of European Studies, told the Global Times on Tuesday.

Since the EU has not promoted the development of the digital economy efficiently, it has been falling behind China and the US. While Huawei, which plays a leading role in global 5G innovations, laid comprehensive foundations in facilities and marketing in the 4G era in the EU. This will pave the way for its rapid development in the 5G era, despite the US crackdown, Zhao noted.

Such cooperation between Huawei and EU markets is beneficial for both sides, Johannes Regenbrecht with the German Embassy in China, noted at a panel discussion on Sunday in Beijing.  

China's development and achievements in 5G basically represent the world, and the Chinese market is also vital for companies from the EU. Maintaining bilateral market access is very important, Regenbrecht said.

Germany is interested in working with Huawei at reasonable rates and investing in 5G networks, so it won't fall behind in advanced technology development and maintain its leadership in Industry 4.0, Regenbrecht told the Global Times.


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