Chinese mega-company Huawei is ploughing $150 million into an R&D campus in Bangalore, India.
India, China’s neighbouring competitive powerhouse, is fertile breeding ground for the network and telecommunications industries. As such, along with the R&D, Huawei India wants to provide the kind of gear which will support telcos with 2G, 3G and LTE and has begun manufacturing in its two Chennai plants.
According to the Times of India, Huawei considers India a “strategic global hub” for its R&D operations. While the Chinese company bolsters its already 6,000-strong commitment, it will also try to win hearts and minds by way of a charity drive, providing handsets and laptops to areas of the country which aren’t as well connected.
Huawei says that, over the last 10 years, it has invested over $400 million in India, so the new $150 million R&D centre is a significant leap for the company.
India and China both have network and communications companies which are keen to establish slow and steady growth in emerging markets. The African continent is an area of investment where both countries have a strong interest.
While India and China are both heavily driven by commercial interests, Chinese firms in particular are vying to create and maintain influence in developing countries around the world. The African continent is an obvious choice for investment, but there are plenty of infrastructure contracts which will be waiting to be won in India, too.