Huawei shifting R&D center from U.S. to Canada

Huawei Technologies Co Ltd is planning to shift its research center to Canada from the United States, as the Chinese tech giant readjusts its business layout amid restrictions from Washington.

Ren Zhengfei, the founder of the Chinese telecoms equipment maker, said in an interview with Canada's Globe and Mail that Huawei's "center for research and development will be moved out of the United States. It will be relocated to Canada."

He said the company will also manufacture some mobile network equipment outside China.

The comments came after the US Commerce Department in May placed Huawei on a trade blacklist, banning it from buying US technologies without special government approval.

Last month, the US Federal Communications Commission approved an order, which imposes limitations on the use of an $8.5 billion government fund to purchase equipment or services from companies including Huawei deemed a threat to national security.

Huawei CFO Meng Wanzhou, who is also Ren's daughter, is currently detained in Canada following a request by the US, which is seeking her extradition on fraud charges. Both Meng and Huawei have repeatedly denied any wrongdoing.

Amid such pressure, Huawei is busy relocating its business layout including research and development centers.

Huawei represents a significant and growing contribution to Canada's GDP with a total benefit equivalent to $690 million in 2018 alone, according to a new study conducted by Oxford Economics Ltd.

In addition, the report said that Huawei supports nearly 5,000 full-time Canadian jobs, has invested $164 million in R&D initiatives and generated $204 million in taxation, potentially helping to support public spending on healthcare, education and other core services in 2018.

"Huawei's economic impact in Canada has grown significantly since 2012. The company's workforce has increased substantially, along with its procurement spending on goods and services from Canadian suppliers," said Andrew Goodwin, director of Applied Economics at Oxford Economics.

Huawei Canada President Eric Li also said the company sees Canada as a strategically significant destination for ongoing investment and growth.

"Canada's concentration of technology partners－both international and domestic, its outstanding network of universities and researchers and its welcoming immigration policies, particularly for skilled high-technology workers, make it our preferred North American platform for future growth," Li said.

Huawei is also stepping up efforts to buy more components and technologies from Japanese and European suppliers, so as to reduce reliance on US technologies and deepen its multi-vendor strategy to ensure sustainability in business development.