Huawei Technologies’ spectacular rise to the top of global telecommunications was fueled in part by state support valued at tens of billions of U.S. dollars, according to an analysis published by The Wall Street Journal. The article examines records pertaining to public grants, loans, tax incentives and other forms of financial assistance awarded to Huawei by government officials in China. The Wall Street Journal estimates this support totals around US$75 billion over the past two decades. Of this total, approximately $46 billion was for credit lines and loans.
In a rebuttal posted on social media, Huawei asserts that its “relationship with the Chinese government is no different than any other private company that operates in China.” Huawei insists that its working capital comes from its own business operations and external financing. The company says that R&D subsidies from the government amount to less than 0.3% of its revenues. Huawei is considering legal action against the Wall Street Journal.
https://www.wsj.com/articles/state-support-helped-fuel-huaweis-global-rise-11577280736
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