Huawei has been accused of having close ties with the Chinese government since the US-China trade ban fiasco started. The whole scenario has come to light again thanks to a recent post by the Wall Street Journal (WSJ). According to the US-based newspaper, the Chinese Tech Giant has been receiving ‘Special’ financial assistance by the communist government, due to which the support to its rivals has stunted.
In the piece, the WSJ claims that Huawei had access to as much as $75 billion in state support. The newspaper claims that the money has been granted to Huawei in various forms including tax breaks and grants.
As far as Huawei is concerned, the Company is still denying all allegations and has said that the WSJ has not put forth any kind of evidence, which is pretty much true. The post seems quite biased considering Amazon has been on a tax break for two consecutive years. The WSJ had nothing to say in response.
On Thursday, in a statement, Huawei cleared the air by saying that the Company has a relationship with the Chinese government that is similar to other private companies in the country. Karl Song, vice-president of the company’s corporate communications department, said:
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. Huawei’s external financing follows all market rules, and our cost of debt aligns with market standards.