Chinese telecoms firm Huawei will open a branch at Smart City and test 5G mobile technology in Malta, The Sunday Times of Malta has learnt.

The multinational company that specialises in network and telecommunications equipment is expected to sign a memorandum of understanding with the government tomorrow.

Sources said Huawei will evaluate the possibility of setting up a research and development facility in Malta apart from the Smart City office depending on the 5G test results.

The 5G testing forms part of Huawei’s five-year plan that started in 2013 to invest $600 million in research on the next phase of mobile phone networks.

It will be the second major Chinese company to invest in Malta after Shanghai Electric Power concluded the transaction to buy a 33 per cent stake in Enemalta last year.

Sources said Huawei’s decision to open shop in Malta was motivated by the country’s geo-strategic position.

Through its Malta office Huawei will be expected to provide various services to the government and is expected to offer support to the national digital infrastructure plan known as Digital Malta.

Headquartered in Shenzhen, the company, which employs 170,000 people , is the largest telecommunications equipment maker in the world having taken over Ericsson in 2012. The company had revenues of $46.5 billion in 2014 and is ranked 285th on the Global Fortune 500.