Huawei and China’s growth have become one of the hot topics of discussion in the consumer device industry, with many considering subsidies as the real game-changing move behind this progress. But one of the officials recently declined this claim.
Li Qiang, China’s Premier, has rejected allegations regarding Huawei and the country that their growth was merely dependent on subsidies and not on other factors.
In the past few months, many analysts and tech observers have suggested that the strong growth momentum of Chinese firms like Huawei is due to subsidy adoption.
The Chinese tech giant used to apply the Chinese subsidy program on almost every one of its devices to ensure that customers get the best product at the best price.
However, during the World Economic Forum Summit in Dalian today, Li Qiang said that China’s progress and the growth of native companies are not just driven by subsidies. He mainly referred to Huawei while saying that the company faced a lot.
Li mentioned that the long-running US restrictions have limited the firm’s (here, HUAWEI) role in crucial infrastructure. But China’s success in every segment – from AI tech to electric vehicle innovation is primarily due to native companies’ investments.
He stated:
“People say Chinese products are competitive mainly because the Chinese government extends subsidies, but that is not the case. The Chinese government is not that wealthy.”
Some analysts believe that China may soon get a new challenge from Europe in the current trade war. Meanwhile, US experts are reflecting concerns about Chinese companies dominating in key technologies such as AI, big data, and manufacturing.
Li believes that it’s more like an achievement rather than dominance that China is gaining despite the US export rules. He added that the country is also growing in terms of multi-use rockets, quantum technology, and semiconductors.
Concluding his speech, Li mentioned that China will continue to participate in global discussions on the governance of AI and other frontier technologies with a responsible and constructive attitude, debates which experts say will ramp up for tech solutions.
(Image Credits: Weibo)
