New Delhi, Dec. 14: Chinese telecom gear maker Huawei plans to invest more than $2 billion in India over the next five years in research and manufacturing.

The $22-billion Chinese vendor is also set to open an R&D centre in Bangalore next year.

Industry experts said the announcement, made ahead of Chinese premier Wen Jiabao’s visit tomorrow, was setting the tone of collaboration and co-operation between the two countries.

Earlier, Chinese telecom equipment were banned in India as security agencies had raised concerns about spyware embedded in the telecom gear, which could allow other countries to control networks from remote locations.

The issue was resolved as Chinese telecom firms Huawei and ZTE agreed to share their hardware and software codes with the security agencies.