Huawei to shift research centre to Canada from US

Huawei chief financial officer Meng Wanzhou says her year in detention has been filled with "moments of fear, pain, disappointment, helplessness, torment and struggle".
Huawei chief financial officer Meng Wanzhou says her year in detention has been filled with "moments of fear, pain, disappointment, helplessness, torment and struggle".

OTTAWA • Huawei Technologies plans to shift its research centre to Canada from the US, Mr Ren Zhengfei, the founder of the Chinese telecom equipment maker, said in an interview with Canada's Globe and Mail.

Mr Ren's remarks came as Reuters reported last Friday that the US is weighing expanding its power to stop more foreign shipments of products with US technology to Huawei.

The US Commerce Department in May placed Huawei on a trade blacklist, citing national security concerns.

Huawei's "centre for research and development will be moved out of the United States. And that will be relocated to Canada," Mr Ren told the Globe and Mail, adding that the company will also manufacture some mobile network equipment outside China.

The Huawei founder wants to build new factory capacity in Europe to make fifth-generation (5G) networking equipment there, hoping to assuage fears stemming from US allegations that its product could be used by China for spying, the Globe and Mail reported.

Huawei was not available to comment on Mr Ren's interview when contacted by Reuters. The firm has previously denied it is a risk to US national security.

The company spent US$510 million (S$696 million) on the operations of its US research arm last year, according to the Globe and Mail report, which added that it has now trimmed the unit's workforce by 600 to about 250.

Separately, Mr Ren's daughter and Huawei chief financial officer Meng Wanzhou, who was arrested by Canadian police on a US warrant late last year, is fighting extradition to the US on charges of violating sanctions against Iran.

She is now out on bail of C$10 million (S$10.3 million) but is not permitted to leave Vancouver.

Huawei has denied the charges and China has urged Canada to release her.

Commenting on her case, Mr Ren said it is an example of "obvious political interference from the US".

On the anniversary of her arrest, Meng has written a reflective, sometimes plaintive letter describing her year in detention in Vancouver as having "moments of fear, pain, disappointment, helplessness, torment and struggle" but also acceptance and more time for herself.

"Over the past year, I have also learnt to face up to and accept my situation," she wrote in the letter, which was published on Huawei's website on Sunday. "I'm no longer afraid of the unknown."

Her arrest, the 47-year-old wrote, had radically changed her daily life, allowing more time for hobbies like reading and painting.

REUTERS, NYTIMES

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A version of this article appeared in the print edition of The Straits Times on December 04, 2019, with the headline Huawei to shift research centre to Canada from US. Subscribe