In a recent development, Chinese wireless equipment manufacturer Huawei has confirmed that its office in France was subjected to a search by French financial prosecutors. The search took place as part of a preliminary investigation into suspicions of "atteinte à la probité," a catch-all term that encompasses various allegations including corruption, misuse of public funds, and influence peddling. However, no specific details regarding the alleged actions have been disclosed by the justice ministry official responsible for the case.
Huawei France, headquartered near Paris, released an official statement confirming the search, which occurred on Tuesday. The company emphasized its full cooperation with the investigation and stated its intention to continue doing so. Huawei has been present in France for over two decades and claims to have abided by all local laws and regulations throughout its operations. While the company refrained from commenting on an ongoing investigation, it expressed confidence in the outcome.
News of the search was initially reported by French website l'Informe, shedding light on the probe initiated by French authorities. Huawei, known for its expansive research centers in France, is currently in the process of constructing its first production factory outside of China, near Strasbourg. The facility is slated to commence operations by the end of 2025 and will cater to the European telecommunications market, employing around 500 individuals in the long run.
However, rifts between Huawei and French authorities have impacted the company's revenue in the country. The French government's decision to exclude Huawei from certain components of its wireless infrastructure prompted operators to initiate the removal of Huawei equipment from cities across France. This situation has taken a toll on Huawei's financial performance. Filings by Huawei Technologies France reveal that the unit's revenue decreased from €1.4 billion in 2019 to €992 million ($1.1 billion) in 2022, the latest available year.
Despite these challenges, Huawei remains engaged in collaborations with French mobile phone carriers, including SFR (a subsidiary of Altice France) and Bouygues, to deploy their 5G networks. Minggang Zhang, co-head of Huawei France, expressed this commitment in December. As the investigation unfolds, Huawei will be closely monitored to determine the impact on its operations in France and the broader European market.