The Wall Street Journal claims that Huawei would have benefited from several Chinese state aids that would amount to $ 75 billion. The amount may seem surprising, but the practice itself is quite frequent. However, Huawei insisted on denying this information.
Huawei quickly denied the information from The Wall Street Journal stating that it was false. The company says it has received “no special treatment” from the Chinese government.
#Huawei does not accept smear campaigns based on false information. Regarding fabrications published about Huawei's financial situation and relationship with the government, we bring you the #facts so you can make an informed decision about the truth. #HuaweiNews pic.twitter.com/VVTEwOkC3O
— Huawei (@Huawei) December 26, 2019
Huawei faces a complex situation where the American ban prevents it from collaborating with key partners such as Google. However, despite this, the company is still one of the largest smartphone manufacturers in the world and is still a leader in the telecommunications field. In other words, the firm remains a major adversary for its competitors like Samsung or Apple.
However, it is interesting to see that Huawei’s power would be largely boosted by a few helping hands from the Chinese government which, taken together, would amount to a sum of $ 75 billion. This is what the Wall Street Journal, taken up by TechCrunch, reveals.
Huawei would have been entitled to about $46 billion in loans and other types of financial support as well as tax cuts of some $26 billion in total. To this would be added favors here and there through land subsidies.
The support of the Chinese state helped support the global rise of Huawei
It is especially the amount of accumulated aid that surprises here. Because ultimately the fact that China grants some advantages to its company is not very surprising. Governments around the world are led to do the same with the big companies. Which are pulling their economies up and participating in the global influence of their respective countries.
In this regard, the journalist Roland Quandt recalls on Twitter that the American Cisco has received subsidies of nearly 50 billion dollars from Washington.
So the WSJ is at it again, pointing fingers at Huawei and their supposed state help. And at the end it says Cisco also got nearly 50 B$ in subsidies. Comments are full of ppl claiming cheating on the Chinese side, with only this one guy getting it right. https://t.co/sVEwUgpar7
— Roland Quandt (@rquandt) December 25, 2019
It will also be understood that the case of Huawei is very specific. China’s aid is not just targeting the help of the giant to cope with Apple and Samsung. It also aims to undermine the policy of weakening carried out by the administration of Donald Trump.