World’s leading telecom company Huawei has decided to move its research center from the United States to Canada after being viewed as a security threat by the government.
Canada Says Hello to Huawei
While talking to the media, Huawei’s founder in Ren Zhengfei announced the company would be moving its research center to Canada for security purposes. This decision came after a report on Friday stated that the US planned to stop all foreign technological shipments from incorporating US technologies to the company.
The telecom giant has already cut its six hundred member large workforce to two-fifty in the United States as it plans to transition to Canada. The Chinese company is the last year alone, invested 510 million dollars on research, and is considered the leading figures in tech world when it comes to 5G technology deployment.
What is the US Government Trying to Achieve
Surprisingly this is the first time that the US government has openly taken a stance against one of the world’s leading companies. On numerous occasions, the US government has cited the Chinese company as a security threat that needs to be addressed. In May, the US Department of Commerce banned the company from selling its products in the US, citing security concerns. Google, had also revoked Huawei’s license after Trump’s executive order. Despite this, the company’s sales continued to grow slowly.
We Will Not Put Up With This
In response to this hostile attention, the Huawei started manufacturing its own components and warned the US and Google that it would not put up with such an attitude for long. According to experts, the Chinese company, in order to strengthen its position and better its negative image as a result of the US allegations, is looking to establish factories in the EU and elsewhere.