Skip to main content

UPDATE 3-EU warns China it is ready to launch telecoms dispute

The European Commission has told China it is prepared to launch an investigation into anti-competitive behaviour by producers of mobile telecoms equipment, opening a new front in a multi-billion-euro trade offensive against a critical partner.

European Trade Commissioner Karel De Gucht said he and fellow commissioners had agreed in principle to open an anti-dumping and anti-subsidy case against China, but would first seek to negotiate a solution with Chinese authorities.

"The clock is ticking. We have had an open-door policy for negotiations with our Chinese partners for approximately one year now and we hope that the Chinese authorities step forward and engage with us in a serious manner," De Gucht's spokesman told a news briefing on Wednesday.

While no companies were named in the statement from De Gucht, officials have in the past said Huawei and ZTE Corp, the world's second- and fifth-largest telecoms equipment makers, were the objects of their concern.

In a statement, Huawei said it was disappointed the Commission had taken the unprecedented step of threatening to launch a case on its own initiative, rather than based on complaints from European companies.

It also dismissed the allegation that it was selling telecoms equipment below cost to secure market share.

"Huawei is confident that these unfounded accusations can be addressed and amicable solutions can be found," it said.

"Regrettably, to date the Commission has not responded to Huawei's requests for meetings and has relied upon unsubstantiated and incorrect information."

ERICSSON OPPOSES MOVE

The Commission's move, which is not supported by all member states or by Sweden's Ericsson, the global industry leader, runs the risk of sparking a trade conflict with China.

The European Union is China's most important trading partner, while for the EU, China is second only to the United States. Chinese exports of goods to the 27-member bloc totalled 290 billion euros ($376 billion) last year, with 144 billion euros going the other way.

The EU now has 31 ongoing trade investigations, 18 of them involving China. The largest to date is that into 21 billion euros of imports from China of solar panels, cells and wafers, for which it is set to impose punitive duties.

_0">

While European manufacturers such as Ericsson, Nokia Siemens Networks and Alcatel-Lucent have suffered as a result of cheap Asian imports, they are not prepared to make a formal complaint for fear of Chinese reprisals, which has made it hard for the Commission to gather evidence.

The EU said that by launching a case on its own initiative - known as an ex-officio case - it would provide a degree of protection for EU companies too concerned to step forward.

Chinese telecoms operators will start awarding contracts for super-fast mobile networks this year, expected to give a big boost to both Huawei and ZTE.

China exports network equipment, base stations and connections used by telecoms providers to transmit voice and data messages worth more than 1 billion euros a year to the European Union, giving it almost a quarter of the market.

_4">

The investigation is not into end-user devices such as telephones and modems but into interconnecting equipment.

_5">

Ericsson, the global leader with around 35 percent of the mobile equipment market, said it opposed the Commission move.

_6">

"Ericsson is a strong supporter of free trade," said Ulf Pehrsson, Ericsson's head of government and industry relations. "We don't believe in this type of unilateral measure."

_7">

Popular posts from this blog

Study Abroad USA, College of Charleston, Popular Courses, Alumni

Thinking for Study Abroad USA. School of Charleston, the wonderful grounds is situated in the actual middle of a verifiable city - Charleston. Get snatched up by the wonderful and customary engineering, beautiful pathways, or look at the advanced steel and glass building which houses the School of Business. The grounds additionally gives students simple admittance to a few major tech organizations like Amazon's CreateSpace, Google, TwitPic, and so on. The school offers students nearby as well as off-grounds convenience going from completely outfitted home lobbies to memorable homes. It is prepared to offer different types of assistance and facilities like clubs, associations, sporting exercises, support administrations, etc. To put it plainly, the school grounds is rising with energy and there will never be a dull second for students at the College of Charleston. Concentrate on Abroad USA is improving and remunerating for your future. The energetic grounds likewise houses various

Best MBA Online Colleges in the USA

“Opportunities never open, instead we create them for us”. Beginning with this amazing saying, let’s unbox today’s knowledge. Love Business and marketing? Want to make a high-paid career in business administration? Well, if yes, then mate, we have got you something amazing to do!   We all imagine an effortless future with a cozy house and a laptop. Well, well! You can make this happen. Today, with this guide, we will be exploring some of the top-notch online MBA universities and institutes in the USA. Let’s get started! Why learn Online MBA from the USA? Access to More Options This online era has given a second chance to children who want to reflect on their careers while managing their hectic schedules. In this, the internet has played a very crucial in rejuvenating schools, institutes, and colleges to give the best education to students across the globe. Graduating with Less Debt Regular classes from high reputed institutes often charge heavy tuition fees. However onl

Sickening moment maskless 'Karen' COUGHS in the face of grocery store customer, then claims she doesn't have to wear a mask because she 'isn't sick'

A woman was captured on camera following a customer through a supermarket as she coughs on her after claiming she does not need a mask because she is not sick.  Video of the incident, which has garnered hundreds of thousands of views on Twitter alone, allegedly took place in a Su per Saver in Lincoln, Nebraska according to Twitter user @davenewworld_2. In it, an unidentified woman was captured dramatically coughing as she smiles saying 'Excuse me! I'm coming through' in the direction of the customer recording her. Scroll down for video An unidentified woman was captured dramatically coughing as she smiles saying 'Excuse me! I'm coming through' in the direction of a woman recording her A woman was captured on camera following a customer as she coughs on her in a supermarket without a mask on claiming she does not need one because she is not sick @chaiteabugz #karen #covid #karens #karensgonewild #karensalert #masks we were just wearing a mask at the store. ¿ o