Huawei gets a Christmas gift from the Wall Street Journal
The Wall Street Journal gave Huawei a Christmas present yesterday in the form of an article titled State support helped fuel Huawei’s global rise (paywall). The reports says:
- “China’s tech champion got as much as $75 billion in tax breaks, financing and cheap resources as it became the world’s top telecom vendor.” (See How the Journal calculated Huawei’s state support for details.)
- These are the calculations:
The largest portion of assistance — about $46 billion — comes from loans, credit lines and other support from state lenders…The company saved as much as $25 billion in taxes between 2008 and 2018 due to state incentives to promote the tech sector. Among other assistance, it enjoyed $1.6 billion in grants and $2 billion in land discounts.
- This matters because Huawei has consistently claimed that it has an arms-length relationship with the Chinese government.
- Huawei blasted the report, tweeting:
Once again, the Wall Street Journal 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.
Click the above Twitter link for Huawei’s full response.
