Tens of billions of dollars in financial assistance from the Chinese government has helped Huawei Technologies rise to the top of the telecommunications industry, according to The Wall Street Journal. The scale of government support for Huawei eclipsed what the Chinese company's closest technology rivals received from their governments, he said.
The Chinese tech leader has received up to $75 billion in tax breaks, government funding and cheap credit resources, according to WSJ calculations. This allowed the world's largest telecommunications equipment manufacturer to offer generous contract terms and cut prices by about 30% compared to competitors.
According to the resource, the largest part of the funding - about $ 46 billion - came in the form of loans, credit lines and other assistance from government lenders. Between 2008 and 2018, the company saved $25 billion in tax payments thanks to government programs to stimulate the development of the technology sector. Among other things, it received $1,6 billion in grants and $2 billion in land purchase discounts.
In turn, Huawei said it received only "small and intangible" grants to support its research, which it said was not unusual. The company also noted that a significant amount of government support, such as tax breaks for the technology sector, is available to other firms in China.
Source: 3dnews.ru