Huawei claims it is not being manipulated by the Chinese government, the subsidies are only for R&D

Not long ago the Wall Street Journal cited a source that said Huawei received a grant of up to $ 75 billion from the Chinese State, so it could still grow steadily despite the US ban.

However, Huawei immediately denied the above information and confirmed that this is false information. On Huawei's side, it emphasizes the relationship between the company and the Chinese government just like any other private company in China.

Although Huawei revealed it would not refuse to receive support from the government, it said all companies, including foreign companies in China, would receive similar allowances.

In a statement, Karl Song, Huawei's vice president, said: "Like other technology companies operating in China, including foreign enterprises, Huawei also receives support policies from the government. China, but we have never received any special offers. "

Huawei said its working capital is mainly from its own business, accounting for 90% of its working capital and partly from funding sources rather than government subsidies.

Mr. Song added: "Huawei's external financing is subject to market rules and our debt costs are in line with market standards."

Earlier, according to a Wall Street Journal report, Huawei received a grant of up to $ 75 billion. This large sum of money enables Huawei to maintain a competitive price advantage over other competitors. In particular, the newspaper also said that the Chinese government has backed Huawei since 25 years ago.

The Wall Street Journal's assessment is based on public documents related to land registration and grants. Huawei's subsidies over the past five years have been 17 times larger than similar grants from Nokia. About $ 46 billion of the subsidy comes from state-owned lenders, including $ 30 billion in credit from the China Development Bank (CDB) and the Export-Import Bank of China during two decades. by.

But Song said Huawei is not the direct beneficiary of that huge credit. He revealed that Huawei signed a strategic agreement with CDB to provide loans to Huawei customers, not Huawei.

In the end, Mr. Song said, the Chinese government's subsidies were mainly used for its research programs. Over the past decade, Huawei's total payments to R&D grants from the Chinese government and outside have accounted for less than 0.3% of total revenue. Even in 2018, Huawei received only about 0.2% of its total revenue.

Since emerging as one of the world's leading smartphone companies, even at one point surpassing Apple, Huawei has fallen into the sights of many governments, including the United States. Huawei was embroiled in a U.S.-China trade war on charges of spying for China and ended up being blacklisted, banned by the US Department of Commerce.

Refer to SCMP