Huawei announced that its relationship with the Chinese government is just like another private company operating in China. Speculations arose that Huawei has been receiving special treatment from China after receiving a 75 billion USD worth of state support. The budget given to the company was reported to have helped Huawei develop into the leading gear supplier for the 5G network industry.
The vice president of Huawei'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," a report claimed. He also added that Huawei has not received any other special treatment from China and debunked speculations that it has been prioritized by the country.
The statement was in response to a report published in The Wall Street Journal last Wednesday. The said report claimed that the Chinese government had been promoting Huawei's services to the global market and provided 75 billion USD in grants, credit facilities, tax breaks, and other financial support to the brand. Song further claimed that the report released false information about Huawei.
The journal also claimed that China had assisted the Shenzhen-based company transition from being a little-known vendor of phone switches into a globally-recognized brand. The report claimed that Huawei is also the largest telecommunications equipment supplier worldwide and that their status in the global economy allegedly helped them garner generous financing terms by some 30 percent from the Chinese government.
It was also revealed that the company had long denied its close links with the Chinese government and continuously maintains that all allegations against them lack evidence. Thus, last Thursday, Song announced that the company's working capital comes are internally generation through its own business operations. In fact, Song urged that about 90 percent of its working capital is taken from its own operations and not from external financing or government subsidies.
Song further clarified that Huawei continuously follows all market rules and that the cost of their debt is always aligned with market standards. During the press conference, Song further added that Huawei is not a direct beneficiary of the 30 billion USD credit mentioned in the Wall Street Journal report and that the company even signed a strategic agreement with CDB to provide loans to its clients.
He further explained that CBD is lending loans to its clients for purely commercial purposes that include the studying of the qualifications of each of its clients on a case-to-case basis.
