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Huawei denies US accusations on Chinese subsidies
Huawei Technologies has denied using Chinese subsidies to gain global market share after it was accused by US lawmakers and EU officials of unfair competition.
"It's not true that Huawei uses subsidies to gain market share," said Chen Lifang, Huawei's global board director.
"We receive legal subsidies. Like European countries, China also gives out subsidies for R&D-related activities. Huawei has taken part in such European and Chinese schemes," said Chen, a member of Huawei's 13-person board.
Huawei and its rival ZTE have come under close scrutiny by US lawmakers and the European Commission, which say both are able to use subsidies to bid for contracts at lower prices than Western competitors.
Both companies rose to prominence rapidly over the past few years, clinching contracts with major telecom carriers and sometimes edging out European rivals Ericsson, Alcatel Lucent SA and Nokia Siemens Networks .
The head of the US House of Representatives' Intelligence Committee this week said apart from the investigation on subsidies, legislation could be proposed to deal with any related national-security threats.
In May, EU diplomats said the trade bloc would like to take action against Huawei and ZTE on the grounds that they receive illegal state subsidies that allow them to sell equipment at lower prices.
Analysts said Chinese telecoms equipment makers had also the support from policy banks, such as China Development Bank , which provided low interest rate loans for network infrastructure projects in emerging economies.
Chen brushed off rumours that Huawei did not need to pay back such loans.
"Our competitors even spread rumours that we needn't repay these loans. This is impossible and untrue," she said late on Friday.
She said Huawei usually worked with Chinese and foreign banks in project financing and loans, and was transparent in the process. In 2011, Huawei borrowed $4.6 billion from banks, with more than 70 per cent from overseas banks and less than 20 per cent from Chinese lenders, Chen said
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