Huawei today, even under pressure from US sanctions, is firmly in second place in the smartphone market, demonstrating a huge sales growth rate.
This is not to say that the company at one time started from scratch. Firstly, at one time, Huawei released smartphones for mobile operators, and secondly, the telecommunications business of the company was strong already in those days.
However, Huawei’s growth is still impressive. And, according to The Wall Street Journal resource, not least the company owes this to the Chinese government.
The source claims that for 25 years, the PRC government in one form or another has allocated Huawei $ 75 billion in financial support. It is worth noting that this is not just about direct financing. This amount consists of tax benefits, available resources, land discounts, grants, loans and so on. In particular, more than half of this amount – $ 46 billion – Huawei received in the form of credit lines and loans.
Against the backdrop of the US confidence that Huawei is working, including in favor of the Chinese government, this information may be the additional oil on fire. However, if you divide 75 billion by 25 years (although this is not particularly correct), you get only $ 3 billion a year, and not in the form of direct investment, but in the form of various financial support. And it does not look unusual.
At the same time, Huawei has already responded to the source’s article, saying that it is based on false information. At the same time, Huawei noted that every Chinese company has the right to government subsidies, and over the past 10 years, Huawei received such subsidies only in the amount of 0.3% of total revenue.