UK welcomes Chinese investment, trusts Huawei: Chancellor Osborne

British Chancellor George Osborne said Wednesday during his visit to Chinese telecom company Huawei that Britain is open to Chinese investment, Huawei said in an e-mail sent to the Global Times Thursday.

The new China is not about low-cost manufacturers, but rather high-tech companies like Huawei, Osborne said, noting that he sees China as [a land of] great opportunities instead of a threat, and he wishes longer and stronger cooperation between China and Britain, according to the e-mail.

Osborne said his visit to Huawei shows that the British government trusts Huawei, although some countries might not be friendly to Huawei, the e-mail said.

Osborne started his five-day visit of China Sunday, aiming to encourage Chinese investors to consider the business potential in Britain. He visited Huawei headquarters in Shenzhen, South China's Guangdong Province Wednesday.

During Osborne's visit to Huawei, Huawei's founder and CEO Ren Zhengfei promised that the company will set up a new research center in Britain, with a total investment of 125 million pounds ($200.4 million), which is part of Huawei's five-year 1.2 billion pound investment plan announced in 2012.

Huawei already has a research office in Ipswich, eastern Britain, which currently employs more than 80 employees, and the company is expected to increase its research jobs to 300 by 2017.

Chinese telecom companies, including Huawei and ZTE, have been facing a series of investigations from the US and EU.

In February, media reported that the European Commission sought to investigate allegations that Huawei and ZTE are receiving government subsidies, and has reportedly been demanding that Chinese telecom companies raise the prices of their exports to Europe.

A US congressional panel called to bar Huawei and ZTE from pursuing mergers and acquisitions in the US due to concerns of their threats to national security.

The concerns were partly caused by suspicions about Huawei's ties with the Chinese government, as Ren Zhengfei used to be a member of the People's Liberation Army.

But they have also been caused by the growing presence of Chinese firms in the world's telecom sector, analysts said.

These countries hold a double standard for Chinese telecom companies while China holds an open attitude toward foreign telecom firms, Bai Ming, a researcher with the Chinese Academy of International Trade and Economic Cooperation under the Ministry of Commerce, told the Global Times Thursday.

Many foreign telecom firms have invested in China, and security reviews for them are necessary, because there are security risks, Bai said.

Documents leaked by former US National Security Agency (NSA) contractor Edward Snowden in September showed massive US spying on Brazilian phone calls and e-mails, including its president.

Francisco J. Sánchez, undersecretary for International Trade at the US Department of Commerce, told a forum in Beijing Wednesday that the cases of Huawei and ZTE remain an exception and the US welcomes Chinese investment.

Sánchez said that the country will soon pass a law to further promote its investment environment for global investors.