Chinese telecom giant Huawei announced in Paris on Thursday that it will build a factory in France to make equipment for 4G and 5G mobile networks.

The company said it chose France because it is one of the world's most advanced manufacturing centers, has mature industrial infrastructure and a highly educated labor pool, and its geographic positioning is ideal for Huawei.

The automated and intelligent facility will mainly produce supplies for European customers, according to Huawei.

Huawei plans to invest more than $220 million in the first phase of the plant. The money will be used for the land, construction, and equipment. And construction of the facility will utilize some of the world's most advanced production equipment and tools from local leading partners.

The new plant will add to Huawei's integrated value chain within Europe, improving the timeliness and reliability of Huawei's deliveries to European customers, according to a company press statement.

The plant will include a demonstration center to showcase wireless base station production, software loading, and testing processes. The center will be open to carriers, governments, and related authorities to demonstrate Huawei's positive stance on Europe's call for digital sovereignty.

With this plant, Huawei said it will be able to cover every link along its value chain and drive forward local industries, in both upstream and downstream segments. The links include research and development, sales, procurement, production, logistics, service, and talent development.

It is estimated that the project will generate $1.1 billion worth of products annually and directly create 500 jobs.

Huawei is in the midst of a tough battle for the 5G market in Europe. In the past two years, the United States government has been pressuring its European allies to ban Huawei from their 5G networks or face repercussions, such as terminating intelligence sharing and other partnerships.

But most European nations have so far rejected an outright ban on Huawei 5G technology, which is widely regarded as the most affordable and most advanced in the world. But they are also planning some restrictions on Huawei in order not to excessively upset the US.

Huawei has had a presence in Europe for 20 years, employing more than 12,000 workers. The total number of jobs it has created directly and indirectly in Europe is estimated at around 170,000.