Huawei has been at the hub of several controversies in the technology industry. Many thanks to the American government, several Chinese manufacturers have to prove to the world that they are safe to use. The company is currently facing multiple bans from the U.S. Furthermore, several other European countries have also banned Huawei (basically Huawei 5G). There are reports that the U.S plays a major role in the decision of these countries. Nevertheless, this does not deter Huawei from developing in the European region.
Recently, the Oxford Economic Research Institute released a report on Huawei. The report comes with the caption “Huawei’s Impact on the European Economy Report”. The report shows out that in 2019, Huawei’s operations in Europe created 16.4 billion euros in economic benefits for Europe; directly or through its supply chain. This translates to about 224,300 jobs and 6.6 billion euros in taxes.
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Huawei has also made positive contributions to Europe in the field of research and development. According to the “2018/2019 EU Industrial R&D Investment Ranking” released by the European Commission, Huawei ranks fifth. In the 2019 patent application rankings of the European Patent Office, Huawei’s patent applications rank first. Pete Collings, head of European and Middle Eastern Economic Impact Consulting at Oxford Economics, said: “R&D investment, just like Huawei has done, is crucial to improving the overall productivity of the European economy.
Huawei says it will continue to develop in Europe
Liu Kang, chief representative of Huawei’s EU agency, said: “In 2019, Huawei’s direct contribution to European GDP was 2.8 billion euros, with an average growth rate of 11.4% in the past five years. In 2020, this special period, Huawei will ensure network stability in Europe. We will operate safely to meet people’s needs for online office, online education, etc. The Chinese manufacturer has developed in Europe for 20 years and has been rooted in promoting the development of the industry. Facing the future, we will still work with our partners to overcome difficulties and create value.”
The Oxford Institute for Economic Research assessed Huawei’s overall economic impact on Europe, including Huawei’s contribution to European GDP, the jobs supported by Huawei in Europe, and the taxes created.
It is quite interesting to see that the company is still doing a lot despite the uphill task it faces. However, with the current political situation in the U.S., it may have another chance to re-negotiate its way out of the ban.
