Huawei to Increase R&D Investment in UK, China Hopes for Resumption of “Golden Era”

On July 31, Huawei announced that it was look­ing to increase its R&D invest­ment in the UK next year, with the 2020 bud­get increas­ing to $18 bil­lion from $15 bil­lion in 2019.  The com­pa­ny also said it hopes to expand its part­ner­ships with UK uni­ver­si­ties. This comes despite reports ear­li­er in July that the UK gov­ern­ment may ban Huawei, sug­gest­ing that the com­pa­ny may have iden­ti­fied Boris Johnson’s replace­ment of There­sa May as Prime Min­is­ter as lead­ing to a soft­en­ing of the government’s out­look towards Chi­na and Huawei more specif­i­cal­ly. In addi­tion to Huawei, state tabloid Glob­al Times has also wel­comed Johnson’s arrival in office, not­ing that “it is believed that fur­ther strength­en­ing of the gold­en era rela­tion­ship is desired by both sides” and that John­son “has nev­er done any­thing to hurt rela­tions with Bei­jing.”