Huawei delivers large economic benefits in Europe
Huawei’s commitment to Europe delivers billions in economic benefits
- €12.8 billion - Huawei’s total contribution to Europe’s GDP in 2018
- 169,700 European jobs supported by Huawei’s activities
- €5.6 billion - total tax payments supported by Huawei’s activities in 2018 (Huawei itself paid €1.8 billion in tax in Europe in 2018)
[Paris, 4 November 2019] HUAWEI, the world’s leading ICT provider, boosted Europe’s economy by €12.8 billion through its economic activity in 2018, supporting 169,700 jobs either directly or through the supply chain, according to a study by Oxford Economics.
Huawei’s direct contribution to European GDP of €2.5 billion in 2018 is more than double what it was back in 2014, representing annual growth of 19% per year in real terms. Over the same period, the total employment supported by Huawei rose by an average of 13% a year, and the total tax revenue it generated by 17% a year.
“The new European Commission wants to deliver digital sovereignty for the EU by establishing a strong technological ecosystem across the continent. This report clearly shows Huawei to be among the top companies in Europe innovating the products and services that will help the EU accomplish its targets,” commented Abraham Liu, Huawei’s Chief Representative to the EU Institutions.
“We are making a sizeable contribution to the EU economy, helping Europe improve productive capacity and ensuring its firms and industries are not left behind by the pace of digital transformation. Our aim now is to help the European Commission achieve its goal of making Europe ‘fit for the Digital Age’.”
An important partner for European businesses
Huawei is among the companies leading the way in accomplishing the EU’s targets by building fast and reliable networks with all major European operators, and investing in research and development. Its 23 research facilities across 12 countries in Europe, and research programme involving 140 European universities, focusing on everything from wireless to optical technology, cloud computing and new materials, are helping European industries strengthen their advantage in these areas.
Moreover, by actively working with European businesses, Huawei is ensuring that its technologies are implemented in ways that maximise the benefits for both individual firms and society more widely.
Oxford Economics measured Huawei’s total economic impact in terms of its contribution to European GDP, the jobs it supports across the continent, and the tax revenues it generates.
Breakdown of Huawei’s impact
In total, it found that Huawei sustained a €12.8 billion contribution to Europe’s GDP in 2018. This comprised:
• Huawei’s direct €2.5 billion contribution, stemming from operational expenditure at its sites across the EU, Iceland, Norway, and Switzerland.
• A €5.4 billion indirect contribution along the supply chain through Huawei’s procurement of goods and services from suppliers in the 12 European countries from which Huawei purchases the most.
• An induced contribution of €4.9 billion, capturing the wider economic benefits arising from payment of wages by Huawei, and by the firms in its supply chain, to employees, who then spend their earnings in retail, leisure and other outlets. It also includes the economic activity stimulated in these outlets’ supply chains.
Huawei supported a total of 169,700 European jobs in 2018 through these three channels of impact. This includes 13,300 permanent employees and contracted staff at Huawei’s European entities, plus a further 80,300 jobs in European firms within Huawei’s worldwide supply chain.
Download the Oxford Economics report
Huawei is a leading global provider of information and communications technology (ICT) infrastructure and smart devices. With integrated solutions across four key domains – telecom networks, IT, smart devices and cloud services – Huawei is committed to bringing digital to every person, home and organisation for a fully connected, intelligent world.
Huawei invests heavily in basic research, concentrating on technological breakthroughs that drive the world forward. Huawei has more than 180,000 employees and operates in over 170 countries and regions. Founded in 1987, Huawei is a private company fully owned by its employees.
In Europe, Huawei currently directly employs over 12,000 staff and runs two regional offices and 23 R&D sites. Huawei has 230 technical cooperation projects in Europe and has partnered with over 150 universities across the continent.
About Oxford Economics
Oxford Economics was founded in 1981 as a commercial venture with Oxford University’s business college to provide economic forecasting and modelling to UK companies and financial institutions expanding abroad. Since then, it has become one of the world’s foremost independent global advisory firms, providing reports, forecasts and analytical tools on more than 200 countries, 250 industrial sectors, and 7,000 cities and regions.
Headquartered in Oxford, England - with regional centres in London, New York, and Singapore - Oxford Economics has offices across the globe in Belfast, Boston, Cape Town, Chicago, Dubai, Frankfurt, Hong Kong, Houston, Johannesburg, Los Angeles, Melbourne, Mexico City, Milan, Paris, Philadelphia, Sydney, Tokyo, and Toronto.
It employs 400 full-time staff, including more than 250 professional economists, industry experts and business editors—one of the largest teams of macroeconomists and thought leadership specialists. Its global team is highly skilled in a full range of research techniques and thought leadership capabilities, from econometric modelling, scenario framing, and economic impact analysis to market surveys, case studies, expert panels, and web analytics.