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China hits back at EC dumping probe

Wide-area modem pricing in the frame

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China has criticised a European Commission probe into pricing policies for wireless wide-area network modems.

A complaint was made by Belgium modem maker Option, which said its products competed effectively everywhere except Europe because Chinese firms were dumping hardware at absurdly cheap prices.

Option said the Commission was also starting a safeguard investigation, with the support of the Belgian government. The Commission could impose extra import duties if it believes the hardware is being dumped.

The Chinese Ministry of Commerce said: "The case involves a huge amount of money. The Chinese public and industry are strongly dissatisfied, and the Chinese side are very concerned," Reuters reports.

The Ministry said trade disputes should be settled by discussion, not protectionism. ®

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