Businesses in China offer subsidies on Huawei phones, encourage employees to ditch iPhones: Report

Businesses in China are also encouraging their employees to stop using iPhones.

Some companies are even willing to go an extra mile and cover the full amount of purchase of a Huawei device (REUTERS)

Following the arrest of its CFO and ban threats from governments around the world, Chinese telecom company Huawei is now getting support from companies in its home market. These local businesses are offering big discounts on Huawei products and encouraging employees to stop using Apple's iPhones.

In order to show support for Huawei, local Chinese businesses are offering subsidies to employees to drive device purchases, reported Nikkei.com. Many firms have subsidised up to 10 to 20% of the cost of the phones for their employees. Some companies are even willing to go an extra mile and cover the full amount of purchase of a Huawei device. More than 20 Chinese companies have announced that they will increase purchases of other Huawei products, the website added.

Huawei is not getting support just from the IT firms but other sectors such as food companies as well. Electronics manufacturer Shanghai Youluoke Electronic and Technology is subsidising up to two Huawei phones per staff member. Similarly, another device maker Shenzhen Yidaheng Technology said that it will compensate as much as 18% of the Huawei or ZTE device cost. It is worth noting that Chinese telecom company ZTE is also facing similar problems in several European markets and the US.

On December 11, Fuchun Technology, a communication service company listed on Shenzhen Stock Exchange, also announced that it would give 100 and 500 yuan to 200 employees who buy Huawei's smartphone before the end of 2018. A brewer in China's Henan province announced that it will provide employees and customers who present their receipt for a Huawei device with free alcohol worth 30% of that purchase.

While most of the companies are wooing employees with freebies, a Shanghai-based business association said it would expel anyone who bought Apple products.

Response from the local businesses comes after the US reportedly asked its wireless and internet service providers to stop using Huawei's equipment amid its trade war with China. After the US, several countries are contemplating ban on the Chinese telecom company. Australia and New Zealand earlier this year blocked Huawei from rolling out 5G network citing security concerns. The UK government is also expected to follow suit.

Huawei CFO, Meng Wanzhou, who is the daughter of Huawei founder Ren Zhengfei, was arrested in Canada earlier this month. She has been accused of fraud and faces a maximum penalty of 30 years in prison if found guilty.

Huawei, however, has rejected security concerns. The company recently announced a $2 billion over the next 5 years to focus on cybersecurity.

"Locking out competitors from a playing field cannot make yourself better. We think any concerns or allegations on security at Huawei should be based on factual evidence," its rotating chairman Ken Hu said. "Without factual evidence we don't accept and we oppose those allegations."