The Chinese tech titan Huawei launches an attack on the Wall Street Journal for a recent report revealing that the $75 billion state aid underpinned the company's explosive growth. The site claimed that grants, loans, tax breaks, and discounted land sales placed Huawei in a stronger position compared to its rivals. In response, the Chinese tech giant denied that the state support for its work resulted in unfair or special treatment.
Huawei recently posted a lengthy rebuttal accusing The Wall Street Journal of basing its report on false information. The Chinese tech giant also said that the report is a pattern of biased reporting, but Huawei did not further explain those allegations. The company had a tough 2019, which the US government blacklisted it.
Its Chief Financial Officer was under house arrest for one whole year. However, Huawei maintained a dominant position in the market despite all these. A representative from the Wall Street Journal said that the publication would stand by its reporting, reports Business Insider. On Thursday, Huawei said that its relationship with the Chinese government is not different from any other private company in China.
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
The company has been continuously linked, having close ties with the Chinese government, and is used for spying. Huawei, however, repeatedly denied these allegations and claims that there is no evidence to support this kind of accusation.
"Like other tech companies that operate in China, including those from abroad, Huawei receives some policy support from the Chinese government," says the vice-president of the company's corporate communications department Karl Song. "But we have never received any additional or special treatment," the executive adds. The company's working capital comes from its own business operations, the vice president claims.
Earnings from business operations make up 90 percent of Huawei's working capital, and its sources to external financial instead of government subsidies, Song explains. "Huawei's external financing follows all market rules, and our cost of debt aligns with market standards," Song adds. Huawei is one of the visible Chinese companies in the tech industry. Its current status and its relationship with the Chinese government have affected its role in the world stage.
