Huawei denied illegal subsidy claims

Published on July 3, 2012 by connie | This story has been viewed 476 views

Shenzhen, China- According to the report of foreign media, a senior management of Huawei, a global leading provider of telecommunication technology and solutions, denied the criticism of the United States and the European Union alleging that Huawei has scrambled for contracts on the global market using the subsidy of the Chinese government.

Chen Lifang, Director of Huawei, earlier told Reuters when taking part in a commercial activity held in Russia, “It’s not real that Huawei has utilized governmental subsidy to win market shares.”

“We have legal subsidies. As some countries in Europe, China also grants subsidies for research and development. Huawei also took part in the subsidy plan in Europe and China,” said Chen.

Some lawmakers of the US congress and the European Union Committee earlier accused Huawei and ZTE which have benefited from illegal government subsidies and scrambled for orders from western competitors.

Huawei firmly denied that it has benefited from illegal government subsidy and Chen Lifang was the first director class senior who made the statement.

Some analysts believe, China’s equipment manufacturers can get low interest loans from the nation’s policy banks, such as China Development Bank.

Chen rejected the alleged rumor that Huawei does not need to payback part of the national loans, “It’s the rumor that our competitors spread. It can not be true that we do not need to pay back the loans.”

Shenzhen Post Elaine contributes to the story.

Possibly Related Posts:


Filed under: Shenzhen