Huawei and other Chinese firms continue to boost R&D investment, surpassing EU

Huawei and some top Chinese companies are constantly increasing their investment in the R&D (research and development) field, and have given a tough spot to the EU. A new report has shed light on this matter and described the R&D segment in detail.

Recently, the European Commission has shared a report regarding the R&D investment and Huawei took the lead in this concept, surpassing the EU. China occupied a big area of the R&D expenditure in the past few years and had more success.

According to the inputs, the top Chinese firms have 17.8% of R&D investment and ranked the second place, following the U.S. with 42.1%. Meanwhile, Europe’s ratio is 17.5%. Notably, a major credit for China’s gain in this segment goes to Huawei.

Huawei R&D Investment

Despite the U.S. ban and strict regulations over trading, the Chinese tech giant continued to portion out 10-20% of its sales for the R&D section. It mainly included fields like communication, AI, chips, and other major aspects. Eventually, the company expended 20.9 billion euros in 2022, an 11% increase YoY.

This investment made the company ranked first among Chinese firms and fifth on the global surface in the Research and Development subject. Apart from Huawei, Tencent is running in second place and Alibaba is holding the third position for investing in R&D, particularly AI.

A variety of U.S. companies have also jumped into this race, working on automobiles and pharmaceuticals. Yet, their R&D growth seems flat when compared to the Chinese companies. No doubt, Huawei and other China-made firms will obtain the top spot in this competition in the time ahead.

Chinese authorities look forward to making the nation a powerhouse of science and technology by 2050. This goal requires high investments in fields like chips, AI, and automobiles. Although, the U.S. and EU are quite alert toward Chinese inventions.

EU has even started investigating smart vehicles that are imported to Europe. On the flip side, the U.S. is checking new China-made chips. It would be worth seeing, how Huawei and Chinese firms put efforts to remain at the top spot in this race.

(Source)