Telecom Lead Europe:
Chinese equipment gear maker Huawei Technologies has denied it benefited
from illegal Chinese government subsidies.
Financial Times reported that the European Union said that
is planning to begin a major trade case against Huawei and ZTE, arguing that
they have benefited from illegal government subsidies.
The union alleged that these companies have obtained illegal
government subsidies and sold products in the EU below cost. The union has also
told member states that it had been gathering evidence for an anti-dumping case
against Huawei Technologies Co Ltd and ZTE Corp.
“Huawei has not received any communication from the
European Commission regarding an investigation, but we are aware of media
reports on this matter. We deny claims made in the media that Huawei employs
dumping practices and has benefited from illegal state subsidies. Huawei also
objects to the investigation that the European Commission is reportedly
launching on the basis of these claims,” Huawei said.
China is the European Union’s second-biggest trading partner
after the United States, and the bloc is China’s biggest trade partner, with
trade between the two forecast to hit a record 500 billion euros ($397 billion)
Despite the flurry of trade between both sides, relations
have been tense, with EU Trade Commissioner Karel De Gucht complaining that
China subsidizes “nearly everything”, distorting competition.
Ericsson opposes EU probe of ZTE, Huawei
Sweden’s Ericsson has come out in support of its rival
Chinese telecom equipment vendors Huawei and ZTE and said that it opposed to a
planned probe by the EU commission into claims that Huawei and ZTE may be
selling products in Europe below cost.
“Any plans by the commission to bring an anti-dumping
case against the firms that could potentially lead to punitive import tariffs
being imposed against them was the wrong way to proceed,” said Ulf
Pehrsson, head government and industry relations at Ericsson.
Huawei employs more than 7,000 employees and has indirectly
created over 6,000 job opportunities in Europe, it said. In 2011, it purchased
products and services in Europe totaling over 2.9 billion euros ($3.6 billion).