A view of Huawei's exhibition stand during the World Internet Conference held in Wuzhen, East China's Zhejiang Province in October 2019 Photo: Zhang Hongpei/GT

Huawei said on Tuesday that it is going to establish manufacturing units to produce locally made 5G in Europe, a move that further rebukes security concerns after the EU declined to impose a blanket ban on the Chinese tech giant in defiance of US pressure.

The news was announced in Brussels on Tuesday by Abraham Liu, Huawei's Chief Representative to the EU Institutions, as the firm celebrated the 20th year of its operations in Europe.

"We are looking forward to the next 20 years here. That's why we have decided we want to set up manufacturing bases in Europe - so that we can truly have 5G for Europe, made in Europe," said Liu.

"Huawei is more committed to Europe than ever before," Liu added.

"The bases are expected to be used for assembly, and scale will not be big," Xiang Ligang, a telecoms industry expert who closely follows Huawei, told the Global Times on Wednesday.

In fact, the company does not have to build manufacturing bases in Europe as it could domestically produce all 5G-related products and later export to the region, which would be even more efficient and cheaper, Xiang said.

However, the plan is anticipated to minimize concerns of many over the so-called security threat, and paves the way for the company's development in the continent, Xiang added.

The comments came days after the European Commission endorsed guidelines that could allow EU member states to decide whether or not to allow "high risk" telecommunications firms such as Huawei into their networks.

Analysts said the decision, which goes against the US' unwarranted and heightened crackdown on the Chinese firm, is "quite hard" for the EU to make, but also shows how advanced and irreplaceable Huawei's equipment is.

In a fresh move to lessen Huawei's dominance, the White House is working with US technology companies to create advanced software for next-generation 5G telecommunications networks that could serve as an alternative to Huawei, according to a report from the Wall Street Journal on Wednesday.

"The US has to accept the fact that it has already lagged behind in this next-generation technology race, and that all efforts against Huawei will be in vain," Xiang said.

Now, as the EU has granted Huawei entry into its 5G construction, the US faces a dilemma: fall behind in the 5G race or cooperate with Huawei to seize opportunities and advantages, Xiang added.

The international community should provide an open, fair, just and non-discriminatory environment for the development of 5G technology based on mutual trust and respect, said Hua Chunying, spokesperson of China's Foreign Ministry, on Wednesday.