Huawei would open a manufacturing facility for mobile phone network equipment in France. It is going to be the first of its kind outside of China.
The amount of investments is at least 200 million euros ($245 million).
The facility in the eastern town of Brumath will create 300 jobs at the start of the operation.
Located near the border with Germany, the site aims to produce 1 billion euros of equipment per year for the European market.
The decision has come as the Chinese telecoms giant is under pressure from accusations by the US. The representatives of the US authorities say Huawei equipment is a spring risk. Moreover, the company is also charged it has assisted efforts by Beijing to monitor Uighur Muslims.
Huawei has rejected accusations by Washington that Beijing could access its equipment to snoop on voice and data traffic. Nevertheless, an increasing number of countries including France have restricted if not outright banned Huawei equipment from their 5G mobile networks.