Brussels, 28/10/2013 (Agence Europe) - The European Commission still has objections to Beijing's subsidies to Chinese telecom equipment producers Huawei and ZTE.
While talks are still under way to settle this issue, “the problem has not gone away”, said European Commissioner for Trade Karel De Gucht when questioned by press on this after his meeting with China's Vice Premier Ma Kai in Brussels on 24 October.
In mid-May, De Gucht announced a decision in principle from the European Commission on the possible launch of an anti-dumping investigation and an anti-subsidy investigation into Chinese telecommunication equipment producers. This decision in principle meant that a formal investigation was not yet open so as to have time to negotiate an amicable solution - which is what De Gucht's staff favoured.
If it was launched, the investigation would be ex officio, in other words on the Commission's own initiative, and not following a complaint from European industries in the sector. It would target equipment from telecoms networks (2G, 3G and 4G), but not terminals (telephones, modems and tablets).
The Commission suspects the two Chinese groups on this market - Huawei and ZTE - of benefitting from Chinese public support in the form of loans at preferential rates.
According to the Commission, Chinese exports of telecom equipment to the European market represent a little over €1 billion per year. (EH/transl.fl)