Brussels, 31/01/2013 (Agence Europe) - The Commission is continuing its anti-dumping investigations of Chinese telecommunication equipment manufacturers. The Chinese authorities, however, appear to want a compromise.
The European Commission and the Chinese government are continuing their discussions about dumping practices and subsidies received by two major Chinese telecommunications manufacturers, Huawei and ZTE. Following a request from China, officials at DG Trade at the European Commission will hold a meeting with their Chinese counterparts on Friday 1 February. John Clancy, spokesman for Commissioner for Trade Karel De Gucht, told EUROPE on Thursday 31 January that, at the request of the Chinese authorities, the Commission has been holding exploratory talks with China, in good faith, for the past six months. He said that these talks are aimed at finding a solution to a possible case of protectionism involving Chinese telecommunications companies. He explained that, as is the case in diplomatic practices, they would not be commenting on the substance of these discussions until a formal conclusion has been reached, which was not yet the case.
The European Commission took this initiative to avoid European telecommunication component part manufacturers from falling victim to trade retaliation measures in China in the event of a complaint made by its services. The Commission investigation would seem to have concluded that the two Chinese telecommunication giants have marketed their goods at prices 35% below market prices for mobile network phone equipment, which had subsequently had a negative impact on European firms. These knock-down prices were made possible by preferential financial support from the Chinese government through its state banks (see EUROPE 10754). Commissioner De Gucht confirmed in mid-December that his staff were in contact with the Chinese authorities concerning this case but not with the companies themselves whose financial concepts had caused the Commission to cast doubt about equal opportunities in this sector.
On Tuesday, the Financial Times provided assurances that, according to diplomatic sources in China, the Commission and Chinese government had been involved in tough negotiations over this affair. According to this British financial newspaper, Commissioner De Gucht has negotiated the withdrawal of the European anti-dumping investigation against the Chinese telecommunication manufacturers Huawei and ZTE in exchange for a rise of almost 30% in their prices and greater opening up on the Chinese market. (EH/transl.fl)