Feeds

Euro states stick fingers in ears to Huawei, ZTE tech 'dump' claims

La, la, la. We can't hear you

Boost IT visibility and business value

A number of EU countries aren't keen on backing the European Commission's bid for a formal investigation of Chinese telecoms manufacturers Huawei and ZTE, Sweden has said.

The commission's trade watchdog has been collecting evidence on alleged subsidies and "dumping" - selling products below cost to undercut European rivals - from the Chinese firms, which have both denied the allegations.

To make the probe official, the commission usually needs a complaint from a European company, but European hardware manufacturers such as Ericsson, Alcatel Lucent and Nokia Siemens Networks aren't interested in moaning about the firms for fear of retaliation in the potentially lucrative Chinese market, sources have whispered.

Top trade official Karel de Gucht told a news conference in Dublin that he had brought up the issue at a meeting of EU trade ministers, a move that had been rumoured before the meeting, but he wouldn't elaborate on the outcome of the discussion.

Swedish Trade Minister Ewa Bjorling told Reuters that most of the ministers said they weren't going to support the launch of a formal investigation.

"Not all member states spoke out, but of those that spoke, a majority was for our position," she said.

One unnamed trade diplomat said that only four out of the 27 EU member states were in favour of a probe and that did not include the EU's largest economy, Germany.

The commission could still push ahead with the investigation, but it's the individual countries that decide whether or not to punish firms for subsidies or dumping.

Both the US and Australia have more or less closed their doors to Chinese telecoms equipment makers, citing security concerns over having communications networks potentially linked to state-backed companies.

Huawei and ZTE have always denied that they're receiving state subisidies from China and said the security concerns are ridiculous, considering most telco gear is made in China no matter what company's name is on the box.

China's ambassador to the EU, Wu Hailong, said in Brussels that China was concerned about the escalating trade frictions between the two regions.

"The EU side has been frequently resorting to trade remedy measures to restrict access of Chinese products to the EU market," he said. "The negative practice is counterproductive to the sound, sustained and stable development of China-EU trade relations." ®

Build a business case: developing custom apps

More from The Register

next story
Munich considers dumping Linux for ... GULP ... Windows!
Give a penguinista a hug, the Outlook's not good for open source's poster child
Yes, but what are your plans if a DRAGON attacks?
Local UK gov outs most ridiculous FoI requests...
Detroit losing MILLIONS because it buys CHEAP BATTERIES – report
Man at hardware store was right: name brands DO last longer
e-Borders fiasco: Brits stung for £224m after US IT giant sues UK govt
Defeat to Raytheon branded 'catastrophic result'
Govt control? Hah! It's IMPOSSIBLE to have a successful command economy
Even Moore's Law can't help the architects of statism now
Snowden on NSA's MonsterMind TERROR: It may trigger cyberwar
Plus: Syria's internet going down? That was a US cock-up
This'll end well: US govt says car-to-car jibber-jabber will SAVE lives
Department of Transportation starts cogs turning for another wireless comms standard
UK fuzz want PINCODES on ALL mobile phones
Met Police calls for mandatory passwords on all new mobes
New voting rules leave innocent Brits at risk of SPAM TSUNAMI
Read the paperwork very carefully - or fall victim to marketing shysters
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Solving today's distributed Big Data backup challenges
Enable IT efficiency and allow a firm to access and reuse corporate information for competitive advantage, ultimately changing business outcomes.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.