The European Commission (EC) will not pursue a trade defence investigation into Chinese telecoms manufacturers after agreeing an amicable settlement with the Chinese government.
“The concerns that have led us to launch the case last May can now be…
The European Commission (EC) will not pursue a trade defence investigation into Chinese telecoms manufacturers after agreeing an amicable settlement with the Chinese government.
“The concerns that have led us to launch the case last May can now be addressed in a systematic and regular dialogue between the two sides for the benefit of our industry,” said EU trade commissioner Karel De Gucht in a statement today.
In May 2013, the EC had said it would launch an investigation into alleged unfair practices by Chinese telecoms equipment makers, which include Huawei and ZTE, if negotiations with Chinese authorities did not result in an acceptable solution.
The investigation would have been launched “ex officio”, meaning the enquiry is not initiated at the behest of third parties – such as European competitors – but the EC itself. The commission launches ex officio investigations particularly in situations where it believes that complainants could be subject to retaliation.
As part of the settlement announced today, the EC and the Chinese government have agreed to: task an independent body to monitor the Chinese and EU telecoms markets; guarantee access to the relevant Chinese standard-setting body for European companies without discrimination; and equal treatment of companies bidding for publically funded research and development projects.
The EU and China also said they would advance the work of the International Working Group on Export Credits.
The potential anti-dumping and anti-subsidy investigation could have resulted in sanctions on Chinese vendors, such as import duties.
China exports telecommunication network equipment to the EU market with a value of approximately just over €1bn per year, according to the EC.
