Huawei planned to invest 200 million euros in 2020, but the COVID-19 pandemic delayed the roll-out.

The source did not give a timeline for when the factory in Brumath, near Strasbourg, will be up and running.

A French government source said the site was expected to open in 2025.

The move comes even as some European governments restrict or ban the use of equipment made by Huawei and ZTE because of security concerns.

However, while European leaders don’t want to anger the United States, which has been insisting that Chinese firms are not used for “security reasons,” they have also been worried about angering the Chinese.  China is France’s third largest trade partner behind the European Union and the United States.

In 2020, the French government told telecom operators planning to buy Huawei 5G equipment that they would not be able to renew licences for the gear once they expire, effectively phasing Huawei out of mobile networks.

Following a meeting with French Economy Minister Bruno Le Maire in Beijing in July, China's vice premier He Lifeng said France had decided to extend Huawei 5G licences in some cities.