Huawei Technologies Co on Thursday denied the Wall Street Journal's report that the Chinese company has accessed $75 billion in special financial assistance from local governments, and said that it reserves the right to take legal action to protect its reputation.
Huawei said in a statement that the article published by the Wall Street Journal is based on false information and poor reasoning, and the company questions the media outlet's motives and purpose for publishing this article.
The remarks came after the Wall Street Journal said in the article that Huawei has had access to $75 billion in government support as it grew from a little-known company to a global tech pioneer.
"Huawei's success is the result of our 30 years of heavy investment in research and development, our focus on customer needs, and the dedication of our 190,000 plus employees,"Huawei said.
The company highlighted that its relationship with the Chinese government is no different than that of any other private company that operates in China. Like other tech companies that operate in China, including those from abroad, Huawei receives some policy support from the Chinese government.
"But we have never received any additional or special treatment," Huawei said, "Our working capital primarily comes from our own business operations and external financing, rather than government subsidies. Over the past 10 years, 90 percent of our working capital has come from our business operations. Huawei's external financing follows all market rules, and our cost of debt aligns with market standards."
Over the past decade, the total amount Huawei has received in R&D subsidies from governments both inside and outside China, just like many other technology companies, amounted to less than 0.3 percent of its total revenue, Huawei said.
"In 2018, we only received an amount equal to 0.2 percent of our annual revenue," Huawei said.
