Huawei reacted to reports from the Wall Street Journal (WSJ) about that its receipt of an ample amount of $75 billion from the Chinese government as financial support. Specifically, the Chinese telecom denied the alleged special treatment saying, the information that spread was all "wild accusations." Relatively, Huawei reacted to the report that spread, in response to s string of tweets later this week saying, "Once again, the WSJ has published untruths about Huawei based on false information. This time," the company continued, "wild accusations about Huawei's finances" ignore its three decades of dedicated investments in research and development that have driven the tech and innovation industry, as a whole.
Furthermore, the smartphone maker said, too, it reserved its right to take legal actions against the leading media company for several irresponsible and disingenuous articles. Huawei also highlighted its R&D spending as the reason why it is continuously succeeding, noting that, over the past three decades, it has been spending from 10 to 15% of its yearly revenue creating new products and technologies.
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WSJ's Report Based on Court Document
WSJ got its report from publicly-available records. Combining all the records it got, the WSJ approximates, Huawei got an amount of $46 billion in loans, as well as lines of credit from state-owned lenders. The said amount was, as reported on WSJ, on top of the $1.6 billion in grants. In this same report, the tech industry leader was said to have saved as much as "$25 billion in taxes from 2008 to 2018," and it was reportedly because of the incentives it got, and the "$2 billion on land purchases."
Moreover, based on what WSJ gathered, "Chinese diplomats may have helped Huawei, as well." Based on the court documents it obtained, the Chinese government helped the leading telecom company close a deal in Pakistan country's government by offering a loan amounting to $124.7 million via the Export-Import Bank of China. The state-owned bank waived the majority of the 3% annual interest on its 20-year loan.
Chinese Government's Financial Support
Before Huawei's tweet denying WSJ's report, it was already reported that the former already "got as much as $75 billion in tax breaks, financing, and cheap resources" as it turned to be the top telecom company in the world. As observed by tech and business experts, this has been an issue they have thought for years already. However, they say it is not a justification for such an accusation with Huawei. Others' opinion is that the rise of Huawei to the top of the telecom industry was remarkably backed by the Chinese government's tax breaks/financial aid and policy favoring local traders of both the smartphones and telecom equipment and other network-connected devices.
Notably, it has been found that the market share of Huawei grew from 27.7% last year to 28.1% first half of this year. And, when looking at the 2nd quarter of this year alone, the company's market share improved to 29%. The said figures took Huawei to the top in terms of worldwide telecom equipment sellers.
