Huawei claims that it has contributed nearly £1bn to UK GDP over the past three years, as well as supporting 7,400 jobs, both directly and through its supply chain.
The figure comes from a study, commissioned by Huawei and conducted by Oxford Economics, and is the first time the Chinese tech giant has had its economic impact figures independently audited.
The research also found that Huawei is making good on its commitment, to spend £1.3bn in the UK over five years.
“Huawei is on track to meet this spending commitment, making it one of China’s largest inward investors in the UK,” the report said. “If the levels of activity undertaken in 2014 were merely maintained, then over the five years 2013-2017 procurement alone would total £1.02 billion, and the total for investment and procurement combined would reach £1.41 billion.”
The five-year commitment was made in 2012 by Huawei’s CEO, Ren Zhengfei, in a meeting with PM David Cameron.
Secretary of State for Culture, Media and Sport, John Whittingdale, commented: “I’m pleased to see the progress Huawei has made since . It is a clear vote of confidence in Britain’s highly-skilled workforce and a recognition of the success we've had in creating the right environment for businesses to grow and flourish.”
Huawei’s total contribution to UK GDP grew by an average of 23.7% annually between 2012-14, according to the study. The Shenzhen-based vendor sourced goods and services from suppliers based in 70% of the UK’s postcode areas and made ‘a positive contribution’ to GDP and employment in all of the UK’s regions.
“The UK is rightly known as a country which has an outstanding record in fostering business growth and pioneering technological innovations,” said another of Huawei’s rotating CEOs, Ken Hu. “These attributes make it one of our most important markets internationally. We are proud to make a contribution to the UK economy through our products and services and the ground-breaking innovation and R&D that we carry out in Britain. The impact report confirms the benefits we bring, but also indicates areas where can improve.”
The news of the economic impact study comes at the same time as Huawei launches its new Western European channel partner strategy.
The announcement of the new programme was made at Huawei’s Western Europe Channel Conference in Munich. Details on the tangible differences between the current and the new strategy were sketchy, with the tech giant using terminology like: a ‘holistic approach to the challenges that businesses are facing as Europe moves towards Industry 4.0’ and ‘working to provide agile, integrated ICT solutions for enterprises of all sizes, enabling them to grow by providing the efficiency they need in the digital age’.
Besides the fluffy channel rhetoric, Huawei publically solidified its relationship with both VMware and Commvault.
“VMware is a leader in some of the technologies that are becoming a prerequisite to staying competitive in the digital market; cloud and virtualisation are key to our digital future,” said Raymond Lau, president of Partners & Huawei Enterprise. “VMware is a valuable partner for Huawei, and I am confident that this new partnership will enable us to fully exploit the win-win potential of this relationship.”