The American Wall Street Journal revealed in an exclusive news report that the Chinese telecom company, Huawei Technologies Co., received 75 billion dollars from the country in the form of tax exemptions and other facilities.
The newspaper said that those billions of dollars that Huawei received from the Chinese government helped it rise to the top of the communications world, a support that dwarfs what its competitors in the technology sector receive from their country's governments.
And the patterns of the investigation conducted by the Wall Street Journal about grants, credit facilities, tax exemptions and other forms of financial assistance provided to Huawei, for the first time about how the Chinese telecom giant obtained state support amounting to $ 75 billion, to upgrade from an unknown company to sell phone exchanges to the largest A company for telecom equipment in the world.
These facilities have helped Huawei to provide generous financing terms and sell at 30% lower prices than its competitors, according to analysts and customers the newspaper spoke to.
Huawei is competing to build 5G networks, and the newspaper considered that Chinese aid to Huawei - including tax breaks that began 25 years ago - is one of the factors that raises questions about the company's relationship with the Beijing government.
Michael Weissel, a congressional committee reviewing US-China relations, said Huawei's business interests are backed by the state.
The United States has raised concerns that the use of Huawei devices could pose a security risk in the event that Beijing requests the company to provide it with network data, and Huawei comments on this by saying it has never provided such data to the Chinese government.
The newspaper pointed out that the largest share of the aid, which is estimated at $ 46 billion, comes from loans, credit facilities and other forms of support from the state.
The company has provided amounts of up to $ 25 billion in taxes during the period from 2008 to 2018, due to incentives from the state to encourage the technology sector.
Annual reports showed that Huawei's official grants amounted to $ 1.6 billion in total since 2008, and in the last five years to 2018, those grants increased 17 times over similar subsidies announced by Nokia Finland, the second largest manufacturer of telecommunications equipment in the world.