Brussels, 09/10/2014 (Agence Europe) - The outgoing Trade Commissioner, Karel De Gucht, wants to end his term in office on a high by wrapping up the two-year-old dispute between the EU and China on the subsidies granted by Beijing to Chinese telecommunications equipment manufacturers. The subject will be discussed on the sidelines of the 10th ASEM summit, to be held in Milan on 16 and 17 October, and the case could be concluded by the end of October, according to information initially reported by Reuters.
De Gucht is reported to be inclined to waive an ex officio Commission investigation into this dossier in exchange for concessions from China. The agreement being studied by Beijing is believed to be based on the following elements: China would undertake to limit export credits to its telecoms equipment manufacturers; both sides would agree to monitor the market share of the Chinese manufacturers in Europe and that of the Europeans in China; both sides would work together on industrial research and standardisation in the sector.
Readers may recall that the Commission suspects that Chinese telecommunications equipment manufacturers - it has never publicly mentioned them by name, but it is referring to Huawei and ZTE - benefit from public support in the form of loans at preferential rates, allowing them to practice prices in the EU which are 18% lower than those of European manufacturers. In this way, Huawei's market share is reported to have risen from 2.5% in 2006 to 25% at the moment. The products in question are Chinese telecoms network equipment (2G, 3G and 4G), but not terminals (telephones, modems and tablets). Imports of mobile telephony network equipment in the EU are worth €1 billion a year. The Commission takes the view that the European equipment manufacturers, Sweden's Ericsson, Nokia Siemens of Finland and the French company Alcatel-Lucent, are penalised by the rock-bottom prices practised by their Chinese competitors in Europe, but did not wish to make an official complaint due to concerns about reprisals against their activities on a booming Chinese market. (EH)