E.U. could investigate Chinese subsidies to modem makers

A second compaint from Belgian modem-maker Option prompted the concern

The European Commission is considering opening a second enquiry to investigate if China is illegally subsidizing tech companies that produce wireless modems.

The move follows a complaint by Belgium modem-maker Option. Option is the E.U.'s only producer of 3G modems and filed a separate complaint about modem dumping by China earlier this year.

Option's new complaint alleges that China's main modem manufacturers, ZTE and Huawei, which hold 90 percent of the market for 3G data cards and USB modems, are being unfairly subsidized by the Chinese government and government-owned banks.

Huawei in particular has a line of credit far exceeding what could be considered normal, giving the company an unfair advantage, said Option spokesman Jan Pote. The company believes that "the selling practices of these Chinese competitors is and has been illegal under E.U. law".

The Commission's Directorate General for Trade could not confirm if a formal investigation would go ahead, a spokesman said.

If the Commission were to find against China in any investigation it could lead to increased import tariffs, which would further strain E.U.-China trade relations. Beijing accused the E.U. of protectionism when the anti-dumping probe was launched in June. On that occasion, Option complained that Chinese companies were dumping wireless modems onto the E.U. market at absurdly cheap prices.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags governmentChinalegalZTEOptionHuawei Technologies

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Jennifer Baker

IDG News Service
Show Comments

Cool Tech

Toys for Boys

Family Friendly

Stocking Stuffer

SmartLens - Clip on Phone Camera Lens Set of 3

Learn more >

Christmas Gift Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?