A top European Union (EU) trade official has accused Chinese mobile telecommunication firms Huawei and ZTE of violating anti-dumping and anti-subsidy guidelines, promising to launch investigations.
According to European Union Trade Commissioner Karel De Gucht the commission will be launching a formal investigation into anti-competitive behaviour by the mobile makers as a way of protecting Europe’s economy.
In an interview with Reuters De Gucht accused the Chinese firms of violating anti-dumping and anti-subsidy guidelines, making their products more competitive than equipment manufactured in Europe.
“Huawei and ZTE are dumping their products on the European market,” said De Gucht.
The investigation that has been launched by China’s greatest market is not being taken lightly by Chinese authorities and is being viewed as a threat to the US$372 billion in trade last year.
The Chinese Ministry of Commerce has already warned it will take firm measures to safeguard its interests.
“If the European side insists on opening an investigation, the Chinese side will according to WTO rules and Chinese law take firm measures to safeguard its legitimate rights and interests, and the consequences must be borne by the party provoking the friction,” Chinese Ministry of Commerce spokesman Shen Danyang told reporters in Beijing.
Huawei said it has played by the rules and attributes its success in the region to trust won through innovative technology and quality service.
However, the EU insists Chinese cheap capital is the reason behind the companies’ success, with Huawei at position two globally and ZTE at fifth in terms of telecom equipment makers. No European firm, however, has yet to make a formal complaint.
