Huawei announced in Paris that it will build a factory in France to make equipment for 4G and 5G mobile networks. The automated and intelligent facility will mainly produce supplies for European customers. Huawei plans to invest more than USD220 million in the first phase on land, construction, and equipment. The new plant will add to Huawei’s integrated value chain in Europe, and will include a demonstration center to showcase wireless base station production, software loading, and testing processes. Huawei said it will be able to cover every link along its value chain and drive forward local industries, in both upstream and downstream segments. It is estimated that the project will produce USD1.1 billion worth of products annually and directly create 500 jobs. Huawei has had a presence in Europe for 20 years, employing more than 12,000 workers. The total number of jobs it has created directly and indirectly in Europe is estimated at around 170,000, the China Daily reports. Huawei said it has secured 91 commercial 5G contracts worldwide, of which 47 are from European telecoms operators.

Huawei announced a series of new 5G products and strategies through a virtual launch in Barcelona, Spain, expanding its footprint in Europe. Key products announced included the 5G foldable phone Mate Xs featuring its self-developed 5G Kirin 990 chipset, with a starting price from €2,499, a flagship 5G tablet MatePad Pro and two Wi-Fi 6+ enabled connectivity solutions. The company has been building up its proprietary software to replace Google’s Android system in the face of the U.S. ban. The firm unveiled the Huawei AppGallery store during the event in a bid to support its devices shipments in Europe without Google’s software. “The HMS ecosystem, together with its self-developed HarmonyOS, is a critical step for Huawei to boost sales in the European market,” Jiang Junmu, Chief Writer at telecom industry news website c114.com.cn, told the Global Times.

Huawei also vowed to invest a total of USD1 billion and host more than 100 events to attract global software developers to help accelerate its HMS ecosystem. “But building a new ecosystem to replace Google is not easy – it’s tough and takes much time, and it’s not clear whether its localization efforts in Europe could finally pay off before the U.S. ban takes effect,” Telecom Analyst Xiang Ligang told the Global Times. Huawei’s global shipments grew 16.8% year-on-year in 2019, securing its position as the world’s second-largest handset manufacturer with a total of 240 million phone sales. Shipment of its 5G handsets surpassed 10 million as of January 2020.

Chinese telecom operators and internet companies are ramping up efforts to explore new opportunities for 5G promotion despite the Covid-19 epidemic. China Mobile, Alipay and Ali Health collectively launched the first 5G package to include medical and health benefits, such as unlimited medical consultations with renowned physicians and medical specialists, video consultations, early screening tests for bowel cancer, and routine physical examinations. Users can apply for the China Mobile 5G health package through the Alipay app. The new package is just one example of the country’s recent 5G promotions. In support of epidemic prevention and control, operators have ramped up promotion of telemedicine and teleconferencing. China Mobile and a third-party enterprise have developed a “5G cloud epidemic-resistant robot” that works in hospitals for 24 hours a day and can replace medical staff to perform a number of tasks including disinfection and drug delivery. The efforts have further pushed 5G commercialization in 2020, which is known as the year of 5G.

China Mobile had 6.736 million 5G package users by the end of January. Industry Analyst Ma Jihua told the Global Times that the country’s pace of 5G construction is not likely to be severely affected, and that the impact of the epidemic will only be temporary. “Currently, some construction work has been delayed due to the extended holidays and lockdowns of some villages and cities. But after the epidemic is over, operators will definitely strive to complete their whole-year tasks,” Ma said. China Unicom announced that it would complete the construction of 100,000 5G base stations with China Telecom in the first half of the year, and move on to complete 250,000 base stations nationwide in the third quarter. On February 22, China’s Ministry of Industry and Information Technology (MIIT) said that the pace of 5G commercial use should be accelerated, and China will strive to complete its development goals and tasks for the whole year, the Global Times reports.