Goy tuuhuud: Huawei a key beneficiary of China subsidies that US wants ended

Monday, September 16, 2019

Huawei a key beneficiary of China subsidies that US wants ended

Huawei has become a major flashpoint in the

trade war, with President Donald Trump taking steps to block the company's dealings with US companies, threatening its global ambitions.

With the dispute shining a spotlight on China's technological shortcomings, the subsidies are a window into the kind of measures Beijing may step up as trade negotiations founder.

Huawei's annual reports and public records show that it has received hundreds of millions of dollars in grants, heavily subsidised land to build facilities and apartments for loyal employees, bonuses to top engineers, and massive state loans to international customers to fund purchases of Huawei products.

"Below market price land sales, massive targeted R&D grants, and export financing on terms that are more favourable than what Huawei could get from the private sector collectively appear to provide significant subsidies that other countries could challenge at the WTO if they are harming domestic companies," said Claire Reade, a former assistant US trade representative.








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