China hits back at EC dumping probe
Wide-area modem pricing in the frame
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. ®
Option has a point
Some of the prices asked for a Huawei modem are in the "does not compute".territory.
There is a number of patents you have to license to have working 2G and 3G kit. I really do not see how you can ship kit at the price asked for it while paying the relevant royalties to the patent pool holders.
That is besides the fact that if this investigation starts to dig in deep there is likely to be a Cisco moment at least with regard to the early Huawei modems. Some of these are more Option-like than Option itself...
absurdly cheap prices for modems
Where, where, where...... Oh hang on I get it now, not retail prices.
Protectionism is bad -
unless «we» do it. Then we are merely protecting the public from the dumping committed by others....