Chinese vendors Technologies and ZTE benefit from substantial financial support from local state-owned banks, according to Dow Jones citing a confidential European Commission (EC) document.
Rumours about the two large vendors benefiting from a…
Chinese vendors Technologies and ZTE benefit from substantial financial support from local state-owned banks, according to Dow Jones citing a confidential European Commission (EC) document.
Rumours about the two large vendors benefiting from a competitive advantage through those subsidies have been circulation for several months now.
Back in September, it had already been reported that ZTE and Huawei could be investigated by the EC following allegations that they both received funding from the Chinese government.
At the time, articles wrote that the European Union could decide to apply import tariffs to the vendors’ products to offset the advantage they are benefiting from, in case the allegations were proven to be correct.
A Belgian modem-maker, Option NV, was cited saying in a complaint that by providing subsidies to ZTE and Huawei, the Chinese government is looking to turn those vendors into top players in the global telecom market.
However, according to Dow Jones, the EC in the document suggestes closing the investigations without finishing them, because the modem-maker withdrew its complaints in October following a cooperation agreement reached with Huawei.
Nonetheless, the Commission reportedly expresses its concerns about the two vendors.
