EU drops anti-dumping case against China

21 Oct 2014

The European Union (EU) has ended a long-standing battle with China over the import of telecoms equipment, abandoning threats to levy punitive tariffs on Chinese vendors, Reuters writes, citing the EU’s trade chief. As previously noted by CommsUpdate, the European Commission (EC) claims that the swift rise of Chinese vendor Huawei’s market share in the European telecoms equipment market could only be achieved with state aid, in contravention of global trade rules. The EC alleged that Huawei was being subsidised by the Chinese government, through the provision of cheap loans to the vendor and its prospective customers, enabling the manufacturer to undercut its European rivals. EU Trade Commissioner Karel De Gucht, who has championed the campaign against the Chinese vendors since May last year, said that the case has been resolved and that an investigation will not go ahead. De Gucht told press that Beijing has agreed to discuss limited export credits to Chinese companies, a step the EU hopes will help bring China in line with international rules. Further, Brussels and Beijing have agreed to task an independent authority to monitor the market share of Chinese vendors in Europe and European companies in China. Indeed, the strongest opponents of De Guchts’ campaign against Chinese vendors came from their European rivals, who feared being shut out of the lucrative Chinese market by reciprocal action from Chinese authorities. China and the EU will also cooperate on industrial research, agreeing to equal treatment of companies bidding for publicly funded research and development projects.

China, Huawei Technologies, ZTE