U.S. Wants to End Chinese State Subsidies and Grants that Benefit Huawei

A new report by AFP has highlighted that in its ongoing trade war with China, the U.S. wants to end all Chinese state subsidies and grants that benefit high-tech companies like Huawei. The telecoms giant has become a major flashpoint in the trade war as President Donald Trump continues to take steps to block the firm’s dealings with US companies.

Huawei logo

Huawei’s public records show it has received hundreds of millions of dollars in grants, heavily subsidised land to build facilities and apartments for loyal employees. Over the past 10 years, Huawei has received nearly $1.6 billion in grants, according to its annual reports.

More than 100 of Huawei’s top engineers have received bonuses through government programmes from the city of Shenzhen last year. Similarly, the city of Dongguan sold bargain-rate lakeside land to the firm to build upwards of 20,000 employee apartments around its campus:

“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.

When asked about the subsidised land, a company spokeswoman said that Huawei contributed to Dongguan’s economic development and pays taxes.

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