The EU will investigate Huawei ZTE

Beijing news :S2326TP-EI an EU official said, the EU Trade Commissioner Karel De Gucht this week will seek out other members of the Commission's support, Huawei and ZTE, two of China Telecom equipment manufacturers "unfair trade practices" investigation.

Harm the interests of both sides

For the European telecommunication equipment suppliers, coincided with a sensitive period, because they are seeking to expand business in china. These European enterprises are worried that this might lead to survey, China to take retaliatory measures, is not conducive to their interests in china.

At present, China telecom operators to carry out cost billions of dollars to the expansion project, trying to build a high-speed wireless data network. The EU's three largest telecom equipment supplier -- Ericsson, Alcatel - lucent (hereinafter referred to as "it") and Nokia Siemens Networks (hereinafter referred to as the "North"), hoping to get important orders from China Telecom operators. Nokia Siemens Networks are created and joint venture.

The three companies fear that, once the European Union decides to launch investigation to Huawei and ZTE, may lead to the government under the control of the Chinese operators for them to take retaliatory measures.

Ericsson government and industry relations department person in charge Ulf Persson (Ulf Pehrsson) said, the company against the investigation of China Telecom equipment suppliers. He said: "for this kind of unilateral actions, we don't play what effect. Global principles Ericsson support applies to all industry participants. The EU will aim at individual companies, will face the risk of triggering a series of negative reaction."

No decision has been made

According to informed sources, "the Europeans worry, Chinese state-owned enterprises in such cases as an excuse, as far as possible with the European companies signed the contract too much." The European Commission investigation has not received complaints in European business situation, this is extremely rare. Although the EU law allows the Council to take such action, but because of the politically sensitive area, some countries may require it to give up this kind of behavior, especially in sweden.

According to the EU officials said, as a permanent executive body of the EU, the European Commission will hold a meeting on Wednesday, Teguh Hurt will present at the conference to seek other members of the Commission's support, to investigate the Huawei and zte. In deciding whether to start the survey at the same time, European officials are watching what businesses will get China Telecom equipment vendor contract. These officials said, he had not yet decided whether to investigate.

The European Union accuse, Huawei and ZTE accept high subsidies from the Chinese government, which can at unfairly low prices to sell their products, the acquisition of a large number of European telecom market share. Data shows, China base station (an important part of the wireless network) exports to the EU 27 countries soared in the past five years, while the price has plummeted.

Denied subsidies

The EU and Chinese governments have held several rounds of negotiations, the European Commission officials hope to get a clear commitment to China, Chinese enterprises with higher than the lowest price products sold in Europe, but the two sides did not reach an agreement at last.

Huawei said, the company has not received illegal subsidies, while denying that controlled by the Chinese government. The company spokesman said, $30000000000 credit agreement Huawei six years ago and the China Development Bank signed, is not binding: "this agreement is a common business practices, complies with all international law and commercial law and related regulations."

Persson said, according to the international practice, export enterprises tend to receive government financial support. To investigate the Huawei and ZTE, I'm afraid not conducive to trade relations between China and europe. Because solar equipment export disputes, economic and trade relations between Europe and China has cracked. This kind of equipment in 2011 China European exports account for about 7%. It is reported, tariffs on Chinese solar equipment collection of 68% Teguh Hurt office plan, this provision is expected S2326TP to come into force in June 6th.

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