28 May 2012
The European Commission is reportedly set to launch one of its largest trade cases having compiled evidence that China’s telecommunications equipment companies are benefitting from illegal state subsidies.
The Financial Times
reports that the case focusses on vendors Huawei and ZTE and
could begin as early as next month.
In a meeting held last week, EU officials reportedly informed
representatives from all 27 EU member states that the
commission was in possession of evidence that Huawei and ZTE
had benefitted from illegal government subsidies and had sold
products in the EU below cost.
If the EU determines that the Chinese government has acted
illegally, it could inflict punishing tariffs on Chinese
European vendors are said to be concerned about the impact that
a trade case could have on their business. Nokia Siemens
Networks, Alcatel-Lucent and Ericsson all have investments in
China and are worried about retribution from the
There is also concern that any case could damage relations
between the EU and China at a time when the European continent
is in a poor financial state.