Huawei says relationship with Chinese government ‘no different’ from any other private company in China
- While it did not deny receiving government assistance, Huawei said all tech companies in China, including foreign ones, are entitled to similar subsidies
- The tech firm was responding to a report that estimated the company had received as much as US$75 billion in state support
Huawei Technologies said on Thursday that its relationship with the Chinese government was “no different” from any other private company operating in China, after a report estimated it had received US$75 billion of state support that helped it grow into the leading 5G network gear supplier it is today.
“Like other tech companies that operate in China, including those from abroad, Huawei receives some policy support from the Chinese government,” Karl Song, vice-president of the company’s corporate communications department, said in a statement. “But we have never received any additional or special treatment.”
The company was responding to a report published by The Wall Street Journal on Wednesday that said the Chinese government promoted Huawei's global rise with as much as US$75 billion in grants, credit facilities, tax breaks and other financial assistance.
According to the Journal, Chinese government assistance helped the Shenzhen-based company grow from a little-known vendor of phone switches to the world’s largest telecommunications equipment supplier, allowing it to offer generous financing terms and undercut rivals’ prices by some 30 per cent.
“While financial support for favoured firms or industries is common in many countries, China’s assistance for Huawei, including tax waivers that began 25 years ago, is among the factors stoking questions about Huawei’s relationship with Beijing,” the report said.
The Shenzhen-based company has long denied close links with the Chinese government and maintained that Washington has no evidence to support accusations that its products can be used to spy for China.
