It appears you have not yet registered with our community. To register please click here...

 
Go Back [M] > Madshrimps > WebNews
Chinese telcos bitten by EU watchdogs Chinese telcos bitten by EU watchdogs
FAQ Members List Calendar Search Today's Posts Mark Forums Read


Chinese telcos bitten by EU watchdogs
Reply
 
Thread Tools
Old 21st May 2013, 07:08   #1
[M] Reviewer
 
Stefan Mileschin's Avatar
 
Join Date: May 2010
Location: Romania
Posts: 111,700
Stefan Mileschin Freshly Registered
Default Chinese telcos bitten by EU watchdogs

While Chinese telecom makers are facing a McCarthy style security purge in the US, in Europe they have fallen foul of anti-dumping and anti-subsidy guidelines.

European Union Trade Commissioner Karel De Gucht is preparing a formal investigation into anti-competitive behaviour by Huawei and ZTE in order to protect a "strategic" sector of Europe's economy.

De Gucht told Reuters that Huawei and ZTE are dumping their products on the European market. If the EU takes action against the two, then they could lose their most important trading partner.

Chinese exports of goods to the 27-member bloc reached $372 billion last year but cheap capital for these Chinese companies creates a distorted playing field, De Gucht said.

Huawei denied it had broken any rules, claimed that it always plays fair and wins business through innovative technology and quality service, rather than via pricing or subsidies.

Huawei's Western Europe president Tao Jingwen said the firm's rivals were blaming the company for their own losses.

He said that such losses were caused by their own laziness, rather than any price fixing from Chinese companies. ZTE has also in the past denied benefiting from illegal state support.

De Gucht's office said an investigation was prepared but put on hold. At the time no companies were officially named. The pause is to allow further negotiations with China in hopes for a resolution. However, the Chinese government has threatened the EU with retaliation if it takes any steps against its companies.

What is strange about the EU moves is that it lacks the backing of EU manufacturers. This is based on a theory that European telecom equipment makers have not made any complaints for fear of Chinese reprisals. After all, most of their gear is made behind the bamboo curtain and they also want to sell in China.

Equally, there might be opposition to the moves from European companies. Ericsson is the global leader with a 35 percent market share and openly said it opposed the Commission's move.

If the EU makes the case, it does so for the first time on its own initiative and the question is why it would be doing that. Some think that the EU is hoping to squeeze something out of the Chinese companies and the US by doing a complex alliance with America over trade tariffs. It would explain why the US is making some unusual claims about the security of Chinese products, even though no one has actually explained how this works.

http://news.techeye.net/mobile/chine...y-eu-watchdogs
Stefan Mileschin is offline   Reply With Quote
Reply


Similar Threads
Thread Thread Starter Forum Replies Last Post
Groupon bitten by watchdog down under Stefan Mileschin WebNews 0 15th March 2013 07:36
Chinese Workers Get Screwed By Everyone Stefan Mileschin WebNews 0 16th February 2012 08:16
Many Chinese Workers Want Those Jobs at Foxconn Stefan Mileschin WebNews 0 1st February 2012 09:39
European telcos agree to reduce roaming charges to ward off regulation Shogun WebNews 0 15th February 2008 18:10
Blatant Chinese rip-off of the Wii - the Vii jmke WebNews 0 4th October 2007 00:07
The Life of the Chinese Gold Farmer jmke WebNews 2 18th June 2007 18:05
Intel to build Chinese fab jmke WebNews 0 26th March 2007 16:24
Chinese New Year 2007 Sidney WebNews 2 18th February 2007 02:00
The INQ goes on the trail of Chinese pirates jmke WebNews 1 9th February 2007 17:35
Happy Chinese New Year! Sidney WebNews 4 8th February 2005 21:30

Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are Off


All times are GMT +1. The time now is 14:25.


Powered by vBulletin® - Copyright ©2000 - 2019, Jelsoft Enterprises Ltd.
Content Relevant URLs by vBSEO