The manner in which China’s Huawei Technologies is managed and operated is not known to US authorities and the allegations that this tech giant from China received funds from Chinese security agencies are groundless and morally malicious, said a report in the Chinese newspaper Global Times – reportedly close to the Chinese administration, quoting industry insiders.

He report also quoted unnamed Chinese industry sources claiming that the allegations brought against the Chinese tech firm show US efforts to undermine the business of the company in the advanced global 5G market and this strategy of Washington was in line with its zero-sum game approach.

The report in the Chinese daily was based on a report recently carried by the Sunday Times in which it had been alleged that funding from the People’s Liberation Army, China’s National Security Commission was received by the Shenzhen, China-based technology giant. Huawei, which is also the largest telecoms equipment maker in the world, was also alleged to be a third branch of the Chinese state intelligence network according to the report published in the Sunday Times where information from the US Central Intelligence Agency (CIA) was citied pot be the source.

“The report is based on unreliable sources and speculation, and lack an understanding of all the facts. The newspaper did not verify the information in the report with Huawei, and the conclusions are completely unsubstantiated and untenable,” a Huawei spokesperson reportedly told the Global Times on Sunday after the publication of the Sunday Times report.

The spokesperson reiterated that Huawei is a private company and is wholly owned by its employees and that no shares of Huawei are owned by any government agency or outside organization and the company has also never been influenced by or attempted to be controlled by such outside forces.

The Global Times report raised questions about the unavailability of any concrete evidence against Huawei despite the CIA being attributed to be the sources of the information alleging financial support to the company by Chinese authorities.

“The lack of proof made the accusation groundless and malicious, which also showed broader efforts and conspiracy by the US to curb Huawei for geopolitical reasons,” Xiang Ligang, director-general of the Information Consumption Alliance, told the Global Times on Sunday.

The report again quoted industry insiders saying that that the allegations against Huawei were “absurd and hysterical” because the company had been very transparent with respect to its financial reports and corporate management policies.

According to the company, the majority of its employees own the privately held Huawei and 96,768 employee shareholders are included in its employee shareholding program.

Ren Zhengfei, founder of Huawei, had said in a media interview earlier that except for a few projects that support scientific research, no subsidy is received by the company from the Chinese government. He had said that the company’s KPMG-audited annual report contains all details of this. “You can see those in our financial report. We also received some subsidies from European governments for basic research,” he said.

(Adapted from GlobalTimes.com)

Categories: Economy & Finance, Geopolitics, Regulations & Legal, Sustainability, Uncategorized