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 recently, like from a cornucopia, Huawei

continues to increase sales, break records andremains the second largest smartphone manufacturer in the world. However, The Wall Street Journal writes that this success is a credit not only to the company, but also to the Chinese government.

What does it mean

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

True, this is the total amount received over 25 years. Nevertheless, this is still more than the help that the closest competitors of the company received from the governments of their countries.

The lion's share - about $ 46 billion - the company receiveddue to loans, credit lines and other support from state 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.

In addition, over 20 years, Chinese banks have provided $ 30 billion in loans to customers of the company. According to the World Bank, money was issued at low interest rates, 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 baseless.

Huawei comment

Huawei representatives immediately responded topublication in the media and confirmed that the company did receive assistance, but these are “small and insignificant” subsidies for the development of their research. Over the past 10 years, this is only 0.3% of total income.

According to company representatives, tax incentives and other state support are available to other companies.

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