A growing number of Chinese companies are throwing their support behind Huawei Technologies following the recent arrest of its chief financial officer in Canada.
This includes offering subsidies for staff who buy the telecom equipment maker's smartphones or even giving them the phones for free.
Many Chinese businesses have told employees they will receive subsidies if they buy Huawei smartphones to aid the company. Most are subsidizing 10 percent to 20 percent of the purchase price, with some even covering the full amount. Over 20 Chinese companies also took to social media to announce that they will increase purchases of other Huawei products, such as its business management system.
Electronics maker Shanghai Youluoke Electronic and Technology is fully subsidising up to two Huawei smartphones per employee, while display equipment maker Shenzhen Yidaheng Technology will cover 18 per cent of the price for Huawei or ZTE units.
Fuchun Technology, a communications service company listed on Shenzhen Stock Exchange announced on social media on Dec. 11 that it would give each of its 200 employees who buy Huawei's smartphone before the end of 2018 between 100 and 500 yuan ($14.5 to $72.5).
To make it even better, a brewer in Henan Province, employees and customers who present their receipt for a Huawei device receive free booze worth 30 percent of that purchase.
For those who came in late, in a move to take hostages in the US trade war, the Trump government arrested Huawei CFO Meng Wanzhou in Vancouver. It is claimed that Meng, daughter of Huawei founder Ren Zhengfei, is suspected of misleading financial institutions about transactions in Iran that violate US sanctions.
The Chinese Foreign Ministry and Huawei have called the arrest wrongful, and they continue to protest Washington and Ottawa.
President Donald Trump is considering an executive order in the new year to declare a national emergency that would bar US companies from using telecommunications equipment made by China’s Huawei and ZTE.
The executive order would invoke the International Emergency Economic Powers Act, a law that gives the president the authority to regulate commerce in response to a national emergency that threatens the United States.
The US is leaning on its allies to do the same on security grounds, Germany has insisted that there is absolutely no proof for the claims.
All this though will cause problems for US outfits like Apple who are seeing their Chinese sales dry up. Communist Party guidance has encouraged corporate support for Huawei. The Communist Youth League has posted articles on social media urging companies to subsidise Huawei products.
Other companies are boycotting Apple, which is battling with Huawei for second place among the world's smartphone producers.
A machinery maker in Shenzhen, where Huawei is based, threatened to confiscate Apple devices from employees and fire those who did not comply. Menpad, a Shenzhen-based tech company, said it would punish employees who buy Apple products. Finally, Shenzhen Yidaheng Technology said it would fine staffers who bought iPhones the equivalent amount of their device, while other companies threaten to withhold bonuses.
According to Chinese media, a Shanghai-based business association said it would expel anyone who bought Apple products, sparking debate on social media over whether such nationalism went too far.