According to informed sources, the European Commission intends to issue a formal warning to China, indicating that it is ready to impose sanctions on the Chinese telecommunications equipment maker Huawei and ZTE with the charge of “illegal subsidies obtained by the two companies”.
EU Trade Commissioner Karel De Gucht (德古特) will win the support of the EU executive on Wednesday, warning that the EU firmly opposed to the attitude of the Chinese government to provide subsidies to Huawei and ZTE.
According to informed sources, De Gucht would like to issue a warning letter to the China side, if those manufacturers do not change their behaviors, the EU will impose sanctions. Informed sources said that De Gucht has got the full support of the European Commission President Jose Manuel Barroso.
China is the EU’s second largest trading partner, the EU believes that the behavior of Huawei and ZTE are dumping practices with support from the Government of China. The EU made the decision that it resolutely resisted the dumping.
A decade ago, Huawei telecommunications had no reputation, but now it together with ZTE has won nearly a quarter of the European market share.
The European Commission believes that this may pose security risks, because many European industries such as health care and public water have been increasingly dependent on wireless technology provided by Chinese companies.
EU officials claimed that they had mastered the evidence of illegal subsidies of Huawei and ZTE.
The Huawei spokesman pointed out that the company had several attempts to communicate with the European Commission, but were rebuffed. The European Commission’s attitude seems to be: “We have mastered the evidence we need, we do not need further investigation.”
Huawei spokesman said: “We are willing to communicate with the relevant stakeholders because they made the allegations; there are misunderstandings, and we always want to sit down and talk with the relevant stakeholders.”