Huawei Denies Receiving Billions in Financial Aid From Chinese Government
upstart writes in with an IRC submission for SoyCow1337:
Huawei denies receiving billions in financial aid from Chinese government:
Huawei may not be as much of a self-made success story as founder Ren Zhengfei has consistently made the company out to be. According to The Wall Street Journal, the Chinese government has granted as much as $75 billion worth of financial assistance to Huawei, allowing the company to spend more freely than it would have otherwise been able to.
Using a combination of publicly-available records, the WSJ estimates Huawei received $46 billion in loans and lines of credit from state-controlled lenders, as well as $1.6 billion in grants. The company was also able to save as much as $25 billion in taxes between 2008 and 2018 thanks to incentives aimed at China's tech companies, and $2 billion on land purchases.
Chinese diplomats may have also helped the company. According to court documents obtained by the WSJ, the Chinese government helped Huawei close a deal in Pakistan by offering the country's government a $124.7 million loan through the Export-Import Bank of China. The state-controlled bank waived most of the three percent annual interest on the 20-year loan. The catch, however, was that Pakistan's government had to skip its usual competitive bidding process and award the contract to Huawei.
Huawei responded to the article in a series of tweets and a lengthy statement posted earlier today. "Once again, the WSJ has published untruths about Huawei based on false information. This time, wild accusations about Huawei's finances ignore our 30 years of dedicated investments in R&D that have driven innovation and the tech industry as a whole," the company said. Huawei also said that it reserved the right to take legal action against the WSJ for "a number of disingenuous and irresponsible articles."
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