Brussels, 30/05/2012 (Agence Europe) - Faced with the rumour of an EU anti-dumping investigation into Chinese telecommunications equipment suppliers Huawei and ZTE, Sweden is alarmed about possible reprisals.
The Swedish minister of trade warned on Tuesday 29 May that there was a risk of reprisals against the EU telecommunications sector, in response to the Commission's investigation targeting possible public aid received by Chinese telecommunication equipment companies. The Financial Times poured even more oil on the fire the same day by revealing that the European Commission had gathered sufficient evidence showing that Chinese telecommunications equipment companies Huawei and ZTE had benefited from state subsidies to export their goods to the EU below their costs, and subsequently win significant global market share enabling them to threaten the two European market leaders, Nokia Siemens Networks and Alcatel Lucent. This rumour was not confirmed on Tuesday by the staff of the trade commissioner, Karel De Gucht, and was denied by the companies Huawei and ZTE. Björling, however, confirmed in her statement reported by the Dow Jones agency that European leaders had informed EU member states during a private meeting in Brussels last week, that there was proof that Huawei Technologies and ZTE had benefited from state aid. Nonetheless, the Swedish minister said that she feared reprisals could penalise Swedish equipment company Ericsson, if the EU decided to impose customs duties on products exported by the two Chinese equipment companies. This is a significant concern because the Chinese companies' share of the European telecommunications equipment market is close to 30% and European equipment companies' share of the Chinese market stands at 45%. (EH/transl.fl)