China's Huawei Technologies has received planning permission to build a £1 billion research and development facility in England.
The facility will employee around 400 people and focus on the production of optical devices for use in fibre-optic communication systems, the company said in a statement.
The move will anger US officials and some British politicians who are pushing Prime Minister Boris Johnson to reconsider a January decision to grant Huawei a limited role in Britain's 5G networks.
Washington says Huawei equipment can be used by Beijing for spying; a charge the company denies.
British officials now say they are reviewing the specific guidance on how Huawei equipment should be deployed in light of new US sanctions on the company announced in May. A decision is expected in the coming weeks.
Huawei said the plans were part of an effort to develop a 500-acre site near Cambridge and boost investment in the area.
"The UK is home to a vibrant and open market, as well as some of the best talent the world has to offer," said Huawei Vice President Victor Zhang.