So is he the secret of success? Huawei received $ 75 billion in funding from the Chinese government

Despite US sanctions and other problems that have been pouring in lately, as if from a cornucopia, Huawei

continues to increase sales and break recordsand remains the second largest smartphone manufacturer in the world. However, The Wall Street Journal writes that this success is the merit not only of the company, but also of the Chinese government.

What does it mean

The publication says that Huawei received $75 billion from the Chinese authorities. These are grants, loans, tax breaks and other forms of financial assistance.

True, this is the total amount received over 25 years. However, this is still more than the assistance that the company’s closest competitors received from their governments.

The company received the lion's share - about $46 billionthrough loans, lines of credit and other support from state-owned banks. Huawei also saved $25 billion in taxes between 2008 and 2018 thanks to government initiatives to promote the technology sector. The company received another $1.6 billion in grants and $2 billion in the form of discounts on land plots.

In addition, Chinese banks have provided $30 billion in loans to the company's clients over 20 years. According to the World Bank, the money was issued at a low interest rate, some received money at 3% per annum.

It turns out that the US accusations that Huawei is working for the Chinese government are not so groundless.

Huawei comment

Huawei representatives immediately respondedfor publication in the media and confirmed that the company did receive assistance, but these were “small and insignificant” subsidies for the development of its research. Over the last 10 years, this is only 0.3% of total income.

According to company representatives, tax breaks and other government support are available to other companies.

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