Huawei - a leader in next-generation 5G wireless technology - is subject to US sanctions over concerns about its ties to the government in Beijing and Washington has urged allies to shun the firm.

Announcing the investment plan Huawei's managing director for Italy Thomas Miao said trade tensions between the US and China were not having an impact on Huawei's business in Italy for now.

"The (Italian) government has an open and transparent policy that will not be affected by the problems between the United States and China," he told a press conference in Milan.

"Over the next three years, we will invest US$1.9 billion in Italy for the acquisition of supplies and US$1.2 billion in operations and marketing, with US$52 million in research and development," Miao added.

He said the plan would create 1,000 jobs directly as well as 2,000 subcontracted positions.

Huawei is barred from developing 5G networks in the United States and the administration of US President Donald Trump is trying to convince its allies to do the same.

Washington accuses Huawei of working directly with the Chinese government, a claim the company denies.

It has put Huawei on its so-called entity list, which meant American companies needed a license to supply US technology to the Chinese firm. 
Monday's announcement in Italy followed reports in the Wall Street Journal that Huawei was planning to make major job cuts at its US operations.