Huawei confirmed that it proposes to invest about USD 500 million for establishing a state-of-the-art telecom equipment manufacturing facility near Chennai.
 
During the visit to china last yearStalin had called for greater economic cooperation between India and China and said "closer economic ties between the two Asian giants will bring peace and prosperity to the region."

Huawei is planning to start operations at its manufacturing facility in Sriperumbudur, near Chennai in the next two years to cater to the domestic needs of the telecommunications market. The plant is expected to attract an investment of around $500 million.

The company has already started contract manufacture of optical infrastructure in the facility and would scale up the facility to manufacture more products in the next one or two years, said P Sanjeev, sales director, Huawei Devices, a division of Huawei Technologies.