A formal investigation by the European Commission into subsidies received by Chinese telecom equipment makers Huawei and ZTE would be met by a swift riposte from Beijing, the Financial Times reported.
According to the article, this message was delivered…
A formal investigation by the European Commission into subsidies received by Chinese telecom equipment makers Huawei and ZTE would be met by a swift riposte from Beijing, the Financial Times reported.
According to the article, this message was delivered to EU representatives at a meeting held in the Chinese capital at the end of June, arranged to diffuse trade tensions between China and the European Union.
In May it was reported that the EU was planning to investigate subsidies received by Huawei and ZTE and alleged dumping by the companies, believed to centre on export credits.
China said in the latest meeting that it would counter any investigation from the EU by scrutinising subsidies granted to European agriculture, automotive, renewable energy and telecoms companies, according to the report, citing a person briefed on the meeting.
The EU has come under pressure not only from China but also EU member states, worried that any action will spark retaliation. Citing EU diplomats, the report says that action is unlikely until at least September.
EU trade commissioner Karel De Gucht has reportedly made combating Chinese subsidies one of his top priorities, but declined to comment to the FT.
The commission had planned to get around potential Chinese retaliation by initiating the action themselves, not at the behest of any EU company – the first time such action has been taken.
Huawei and ZTE have denied the reported allegations against them as have Chinese government officials.
