Chinese vendor Huawei is reportedly doubling down on Italy while scaling back what little presence it has in the US even further.
Thomas Miao, Huawei’s Italian boss, announced the company will invest over a billion bucks a year for the next three years in Italy, according to a Reuters report. No such pledge can be made without a few strings attached, however, and Miao apparently called on the Italian state to ensure a level playing field for Huawei in the country, though its ‘golden power’ that allows it to poke its nose into the telecoms sector if it feels like it.
We’re told Italy recently augmented this power in apparent response to security concerns over the involvement of Huawei and ZTE in the country’s 5G network and Miao wants to make sure those powers will be used with equal vigour towards Ericsson and Nokia too. There were no overt conditions attached to the investment, but it seems clear that it might suddenly disappear if the Italian political environment deteriorates for Huawei.
Meanwhile the WSJ reports that Huawei plans extensive layoffs in the U.S. Specifically this refers to some Huawei research labs called Futurewei, that employ around 850 people. The source is the usual people who reckon they know a thing or two, but it’s totally believable considering how hostile the political climate in the US is towards Huawei. Well-known hedge fund manager Kyle Bass seemed to welcome the news on Twitter.
huawei is laying off as many as 850 people from its “R&D division”(aka Thievery Division) in the US.Many have already received notices to go back to china and regroup or be fired. @HuaweiFacts hasn’t posted the firings to its twitter site yet. #Nohuawei #goodbye https://t.co/qttLQs6nc9
— Kyle Bass (@Jkylebass) July 14, 2019
Having said that Reuters, once more, reports that the US government is set to start some limited trade between US companies and Huawei within weeks. This development comes in the face of considerable domestic opposition to President Trump’s minor concessions and serves to further illustrate what a good move it will probably be for Huawei to clear off from that country entirely.