Telecom Lead Asia: With the European Union set to launch
trade cases against Chinese telecom equipment makers, China has said that it is
investigating the matter if the EU is actually illegally subsidizing its
industries.

 

China has warned that it will probe illegal EU
subsidies to counter Brussels’ reported decision to launch anti-dumping
cases against Chinese telecom firms for receiving subsidies.

 

A few days back, Financial Times reported that the
European Union 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 denies benefit from illegal Chinese subsidies

 

However, Huawei Technologies denied that it benefited
from illegal Chinese government subsidies.

 

An official from the Ministry of Commerce said that China
has not got any official confirmation from the EU on the matter. “If
the report is correct, China will not put up with such trade
protectionism,” the official said.

 

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.

 

 

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