Chinese group Huawei Technologies, the second-largest telecom equipment maker in the world, plans to invest $2 billion on expansion of its operations in Britain, creating about 700 new jobs in the next five years.
Founder and chief executive Ren Zhengfei outlined the company's plan yesterday, when he also met prime minister David Cameron.
Ren said the UK was an open market, which welcomed overseas investment and that he was therefore very pleased to announce the $2 billion investment and procurement plan for the development of openness and free trade.
Cameron, who had been targeting overseas investment to help kick-start economic growth, said he wanted to see more companies invest in the UK as the government worked to achieve sustainable and balanced growth of the economy.
The British government valued the important relationship with China, and both countries had much to offer each, he said, adding that the business environment the government was creating in the UK allowed maximisation of the potential.
Huawei, whose expansion plans have often aroused security fears and recently Australia and the US, said it would invest 650 million pounds in Britain, where it would build its workforce to over 1,500 by 2017. According to the company, a further 650 million pounds would be spent buying components over the next five years.