Huawei denies it has received billions in aid from the chinese Government

The technology giant chinese Huawei has denied allegations of having received public subsidies in the billions by the Government of China to 75,000 million doll

Huawei denies it has received billions in aid from the chinese Government

The technology giant chinese Huawei has denied allegations of having received public subsidies in the billions by the Government of China to 75,000 million dollars (68.180 million euros), according to reports from an article published this Wednesday by The Wall Street Journal.

The chinese manufacturer has indicated that the relationship of the company with Beijing “is no different” to that of any other private business, including technology companies, foreign, and has accused the daily financial newspaper based its article on “false information and a misguided reasoning,” said Huawei this Thursday in a press release.

“Recently, The Wall Street Journal has published a series of fake articles about Huawei. These articles have seriously damaged the reputation of Huawei. Huawei reserves the right to take legal action to protect his reputation,” said the company.

“we have Never received a special treatment”, defended the chinese company. “Our relationship with the chinese Government is no different to any other private company,” he added, pointing out that in the last ten years the 90% of the working capital of the company has been originated through its business operations.

The Wall Street journal newspaper reported that the chinese manufacturer had benefited to boost its expansion of public aid to Beijing that would include, among other things, credit facilities, tax exemptions and subsidies, and that would have amounted to about 75,000 million dollars, enabling Huawei to offer generous financing terms and low prices of the competition in a third part.

In this sense, the chinese manufacturer, designated by Washington as a potential threat to national security, explained that all chinese technology companies have the right to receive subsidies provided that they comply with some conditions and has stated that in the past ten years, Huawei has received public subsidies at an amount of less than 0.3% of the total annual revenue and 0.2% in the case of 2018.

Investment in R+D

Also, the manufacturer has pointed out that, in the past 30 years, has invested between 10% and 15% of their annual revenue in R & D, reaching only in 2018 a cost of 15,000 million dollars ($13.532 million euros), which would make Huawei the fifth largest investor in R & D around the world.

In fact, Huawei has argued that its investment in 5G amounts to more than 4,000 million dollars ($3.608 million euros), “more than all the major vendors in the US and the EU together.”

“The subsidies provided to technological enterprises are primarily used to boost research. Huawei the request like any other business”, noted by the chinese company, reminding us that “it is also common that the western governments offer grants to support programs of technological research.

“while the financial support to certain enterprises or favored sectors is common in many countries, the assistance of China to Huawei, including the tax exemptions that began 25 years ago, is one of the factors that question the relationship between Huawei and Beijing,” noted the newspaper of the american, who analyzed in his research the public records available, including statements of the company and registration documents of the property.

Updated Date: 26 December 2019, 14:00

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