China's telecommunications company Huawei Technologies denied a media report about its plan to set up a large plant in Japan on Thursday. In fact, it clarified that it is setting up a research laboratory, according to a note the company sent to the Global Times on the same day.
The Japanese lab was designed for process development and will be established in Funabashi, Chiba Prefecture this year, the note said, noting that its employees are expected to reach dozens by the end of 2017.
"With the lab, we will cooperate with suppliers and partners in Japan in the areas of process research, experiments, and trial production of components needed by Huawei products," the note said.
The company selected Japan to expand its global value chain due to the "country's cutting-edge manufacturing capabilities and quality management systems as well as its spirit of craftsmanship and pursuit of excellence," it noted. It was reported earlier on Thursday by Nikkei that Huawei will soon start setting up its first plant in Japan by using the country's technological expertise in the field to produce telecommunications and related equipment.