Huawei will build its first European manufacturing plant in France, the chairman said on Thursday, as the Chinese telecom giant seeks to ease worldwide concerns stoked by U.S. charges that Beijing could use its equipment for spying.

Liang Hua said Huawei, the world's biggest producer of telecoms equipment, would invest €200 million ($217 million) in the first phase of setting up the mobile base station plant. He said it would create 500 jobs.

Huawei, which denies its equipment poses a security risk, is at the center of a storm pitting the United States against China over 5G, the next generation mobile technology. Europe has become a major battleground.