The Wall Street Journal had recently published an article suggesting that Huawei got as much as $75 billion from China. That managed to provoke the company quite a bit. Huawei was quick to respond to the article, calling it “defamatory”.
That article was published on December 25, and is titled “State Support Helped Fuel Huawei’s Global Rise”. The Business Insider reports that a representative for The Wall Street Journal stands by its reporting.
Huawei denies receiving $75 billion from China, says it’s “false information”
In its statement, Huawei said that the WSJ relied on “false information”, while it also called it a “defamatory” article.
In its statement, Huawei said that its success is the result of 30 years of heavy investment in R&D, its focus on customer needs, and the dedication of its 190,000+ employees.
Huawei also questioned the WSJ’s motives and purpose for publishing its article, as it called it “a professional media outlet”.
The company says it’s “wholly owned by its employees”
Huawei’s representative reiterated that Huawei is a “private company wholly owned by its employees”. It also said that Huawei invested 10-15-percent of its annual revenue into R&D. Huawei’s R&D investment over the past decade amounts to almost $73 billion, said the company in a statement.
In its statement, Huawei also said that its relationship with the Chinese government is no different than that of any other private company that operates in China. It said that it receives some policy support from China, like many other companies out there.
Huawei claims that it is getting the same treatment as every other company that operates in China, and meets certain conditions
Huawei says that every tech company that operates in China is entitled to certain subsidies from the government, if it meets specific conditions. That also includes companies which are based abroad, but operate in China.
You can read Huawei’s whole statement below this article, as we’ve embedded the Tweet that the company shared.
The Business Insider says that Huawei did not immediately respond to its request for more information. It also notes that Huawei did not specify the information it alleged to be false. It also did not provide details to substantiate its claim of an ulterior motive behind the WSJ’s work.
In addition to the WSJ article we’ve mentioned, the site also published a second article in which it explained how it calculated Huawei’s alleged state support, in case you’d like to check it out.
As most of you know by now, Huawei was placed on a US government blacklist in May. Most companies are not allowed to do business with Huawei at this point, as the company is trying to resolve the situation. Some people think this had happened in order for the US to get a better trade deal with China, but the US claims that there are security reasons behind the move. In any case, the situation is extremely complicated.
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