Prime Minister David Cameron has claimed credit for a deal with China-based networking giant Huawei to invest some £1.2 billion in the UK up until 2017.

Over the next five years Huawei will invest £650 million in research, development and centres of excellence, and spend a further £650 million in local procurement.

It has also pledged to increase its workforce in the UK by 700 people to over 1,500 employees over the same period.

"The investment announced by Huawei today demonstrates once again that the UK is open for business. I welcome this and I want to see more companies invest in the UK as we work to achieve sustainable and balanced growth within our economy,” Prime Minister David Cameron.

“The British Government values the important relationship with China, both countries have much to offer each other and the business environment we are creating in the UK allows us to maximise this potential."

Huawei has noticeably tried to increase its presence in Europe in recent years and earlier this year signed a significant five-year managed services deal with Telefonica UK (O2).

O2 announced that it will be transferring 118 staff to work for Huawei’s managed services business, where under the agreement, Huawei will be charged with planning, implementing and managing Telefonica’s core transmission, mobile access and network in the UK.