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Chinese Telecommunications Imports Will Not Be Investigated By The EU

October 20, 2014

It was recently announced that Huawei Technologies Co. and ZTE Corp will not become subject to an anti-subsidies investigation by the European Union (EU), China Daily has reported. The EU Trade Commissioner—Karel De Gucht—and the Chinese Minister of Commerce—Gao Hucheng—met at the annual trade committee meeting in Brussels this month to discuss the development.

Although Brussels still needs to undergo some internal procedures before the decision is made final, the negotiators have reached an oral agreement and the result has been long awaited. It was originally announced in 2013 that Brussels would begin investigations into imports of mobile telecommunications devices made by Huawei and ZTE, amid claims the companies had received unfair subsidies from the Chinese government.

De Gucht and Hucheng both chaired the annual event and both agreed to hold more one-on-one meetings in order to clear the air of any rising trade disputes or arguments, in a bid to deepen communications between the two.

If the agreement is passed then the tariffs Huawei is subject to will be discarded. The company has been a major supplier of technology to European telecommunications companies and has been accused of "dumping" its products on the EU market for low prices. This agreement will make it possible to review the market-share of Chinese equipment manufacturers in the EU. The Chinese government is also due to review the large loans and loan guarantees that are awarded to Huawei and ZTE in order to finance their equipment exports.

Joy Tan, the chief spokesperson for Huawei, said the company was striving to "deepen communication with local partners and customers" in the EU.

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