Huawei dismisses WSJ report of state aid

Huawei Technologies yesterday refuted claims by the Wall Street Journal that the Chinese tech company had received “tens of billions of dollars in financial assistance from the Chinese government.”

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

The report alleged that Huawei received US$75 billion in tax breaks, financing, and cheap resources from the Chinese government.

Huawei hit back at the WSJ, saying the report is based on misinformation and chaotic logic, noting that it ignores the company’s huge engagement in research and development over the past 30 years and the hard work of 190,000 Huawei employees who focus on customers.

According to Huawei’s figures, some 45 percent of the company’s workforce is in R&D. In 2018, R&D spending reached US$15 billion, accounting for 14 percent of its revenue. The company has consistently invested 10 to 15 percent of its sales revenue in R&D every year in the last 30 years.

The company said that the R&D-related subsidies it received from the government in the past 10 years accounted for less than 0.3 percent of its earnings.

“The Wall Street Journal’s frequent and irresponsible selective coverage of Huawei has made a huge impact on Huawei’s reputation,” said Huawei, saying it reserves the right to take legal measures to protect its reputation.