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Huawei denies report of special treatment by Chinese government

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Huawei says it’s treated like all other tech companies in China.

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What you need to know

  • In a report published on December 25, The Wall Street Journal claimed that support from China greatly aided Huawei’s rise in the global market.
  • Huawei claims it receives no special treatment and is under the same rules as other tech companies.
  • Huawei says that the report has seriously damaged its reputation, and it may take legal action.

Once again, Huawei is in the headlines for reasons it would rather not be. This time, in response to a report published December 25 by The Wall Street Journal, in which it was alleged that Huawei received $75 billion in Chinese state financial assistance over the past two decades.

On December 26, Huawei responded. In a Twitter post that included several tweets as well as a letter, the company says:

Like other tech companies that operate in China, including those from abroad, Huawei receives some policy support from the Chinese government. But we have never received any additional or special treatment.

The financial aid that Huawei got from the Chinese government came in the form of about $46 billion from state lenders as credit lines, loans, and other help, according to the WSJ report. There was also reportedly $25 billion in tax breaks from 2008 to 2018 due to government programs for the tech industry, $2 billion in discounts on land, and $1.6 billion in the form of grants.

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. Read on for the #facts. pic.twitter.com/MpFVDIUecO

— Huawei (@Huawei) December 26, 2019

Huawei says that its success comes from its:

30 years of heavy investment in R&D, our focus on customer needs, and the dedication of our 190,000+ employees.

It also states that the recent articles from The Wall Street Journal are “disingenuous and irresponsible,” saying that it “reserves the right to take legal action to protect our reputation.”

As Huawei attempts to gain inroads to the global 5G market, it will be interesting to see how things progress in 2020.

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