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 ChinalegalZTEOptionHuawei 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

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Cate Bacon

Aruba Instant On AP11D

The strength of the Aruba Instant On AP11D is that the design and feature set support the modern, flexible, and mobile way of working.

Dr Prabigya Shiwakoti

Aruba Instant On AP11D

Aruba backs the AP11D up with a two-year warranty and 24/7 phone support.

Tom Pope

Dynabook Portégé X30L-G

Ultimately this laptop has achieved everything I would hope for in a laptop for work, while fitting that into a form factor and weight that is remarkable.

Tom Sellers

MSI P65

This smart laptop was enjoyable to use and great to work on – creating content was super simple.

Lolita Wang

MSI GT76

It really doesn’t get more “gaming laptop” than this.

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?