Brussels, 18/12/2012 (Agence Europe) - The Commission aims to draw up the pros and cons for the interests of European industry before tackling the Chinese telecommunications network-equipment manufacturers ZTE Corp. and Huawei Technologies Co.
The European Commission is therefore continuing its investigative work and its search for proof of dumping practices and subsidies received by the two Chinese telecommunication equipment giants.
“We are very closely following this and continuing our investigation. We will have to see in the coming weeks, if not months, what finally should be the decisive step we take”, explained Commissioner Karel De Gucht during a press meeting on the sidelines of his trip to Singapore last weekend, as reported in the Wall Street Journal of 18 December. De Gucht also said that his services were in contact with Chinese authorities on this issue, but not with the companies themselves, regarding “the financial constructs that make us have doubts about the level playing field in this sector”.
According to an internal document from the European Commission, unveiled by the Wall Street Journal on 7 December, the inquiry conducted by the DG Trade services concludes that the two Chinese network equipment manufacturers marketed their products at prices 35% below those on the market for mobile network equipment, causing injury to European industry. China's low prices were made possible by the preferential financial support afforded by the Chinese government via its state-owned banks.
The Commission, however, like the member states, fears the risk of reprisals likely to penalise European equipment manufacturers on the Chinese market if the EU decides to impose customs duties on the products of Chinese equipment manufacturers' products. Huawei is the second largest in the world behind Ericsson of Sweden. ZTE ranks fifth behind Nokia Siemens of Finland and Alcatel-Lucent of France. (EH/transl.jl)