Huawei debunks rumors of Chinese government financial aid
Huawei is once again finding itself in the U.S. government hot seat on claims that the company's growth was the result of Chinese government financial aid.
Bill Plummer, Huawei's vice president of external affairs, was quick to dismiss the allegations, saying that they are "fundamentally and utterly incorrect."
Fred Hochberg, U.S. Export-Import Bank president said that Huawei's meteoric rise was made possible by a $30 million credit line from the Chinese Development Bank (CDB).
"This backing allows Huawei to significantly reduce its cost of capital and to offer financing to their buyers at rates and terms that are better than their competitors," Hochberg said in a speech last week.
In response to Hochberg's claims, Plummer said that in 2004, the CDB and Huawei did agree to make "as much as $10 billion in export credits to potential Huawei customers, not Huawei."
Huawei and the U.S. government haven't been on the greatest terms in recent years. The Chinese company was forced to abandon its proposed acquisition of server company 3Leaf Technologies when the Obama administration raised national security concerns about the deal. Earlier in 2008 Huawei had to abandon a planned acquisition of 3Com.
- Reuters has this article