On February 8th, a source from the French judicial sector revealed that the office of Chinese telecom giant Huawei in France was raided on February 6th due to suspected violations of integrity. The source stated that the raid was part of a preliminary investigation initiated by the French National Financial Prosecutor’s Office (PNF). Huawei’s French company confirmed this news in a response issued on February 8th.
In a statement made on February 8th, Huawei France denied any wrongdoing and stated: “Huawei has fully cooperated with the investigators and will continue to do so. Huawei has been in France for over 20 years and has always respected all French laws and regulations. Although Huawei France does not wish to comment on the ongoing investigation, the company remains confident in the outcome of the investigation.”
As of the time of writing, the French National Financial Prosecutor’s Office has not immediately responded to requests for comments.
Huawei’s French headquarters are located in Boulogne-Billancourt, Paris, and there are no further details about the investigation yet. It is understood that the French definition of “violations of integrity” includes corruption, abuse of power, and illegal acquisition of benefits.
It was reported in April 2022 that following a report by the French Anti-Corruption Agency (AFA) in January 2021 about Huawei’s potential misuse of corporate assets and tax fraud, a preliminary investigation was started in Nanterre city and has been transferred to the Paris financial brigade.
However, according to the latest news on February 8, 2024, a French judicial source stated that the raid on Huawei was “not based on the report from the French Anti-Corruption Agency in Nanterre.”
DiskMFR learned that Huawei started its operations in France in 2003, setting up six research centers and one global design center in Paris. Currently, Huawei is building a factory in Alsace, its first outside of China, aimed to start producing mobile telecommunications network equipment, including 5G, by the end of 2025. Huawei currently holds about 20% of the French telecom infrastructure market share.
In June 2023, the European Commission considered Chinese telecom equipment suppliers, including Huawei and ZTE, as a risk to “EU security”. Thierry Breton, the European Commissioner for the Internal Market, called on the 27 member states and telecom operators to exclude these devices from their mobile networks.
Zhang Minggang, the deputy general manager of Huawei’s French subsidiary, stated in December 2023 that Huawei’s first overseas factory would be established in France, with an annual output value of 1 billion euros, supplying products to the entire European market, and is expected to start production in 2025. Despite facing sanctions in some countries and regions, Zhang Minggang said that Huawei will continue to invest in France.
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