A Huawei signage is pictured at their store at Vina del Mar, Chile July 14, 2019. REUTERS/Rodrigo Garrido
MILAN (Reuters) – China’s Huawei Technologies said it will invest $3.1 billion in Italy over the next three years, as the Chinese telecoms giant called on Rome to ensure the “transparent, efficient and fair” use of its ‘golden power’ on 5G network development.
Speaking at an event in Milan on Monday, the chief executive of the telecoms giant’s Italian unit, Thomas Miao, said Italy’s golden power – which allows the state to intervene in the private sector in the defense of national security – should be extended to all vendors from the European Union.
Italy recently beefed up the measure due partly to concerns over the potential involvement of Huawei and fellow Chinese company ZTE Corp (000063.SZ) in the development of 5G networks, a government source said on Friday.
Miao said Huawei would add 1,000 jobs in the country over the next 3 years.
He also confirmed the Chinese company would cut 1,000 jobs in the United States. He said if the company is kept on a blacklist in August by Washington, it has “a plan B” to guarantee supplies of components.
The United States has lobbied Italy and other European allies to avoid Huawei equipment and also to closely scrutinise ZTE, alleging the vendors could pose a security risk. Both companies have strongly denied any such risk.
Reporting by Elvira Pollina; Writing by Giulio Piovaccari; Editing by Jan Harvey