The European Commission has stated that it will drop its “anti-dumping” investigation into Chinese telecom equipment imports.
Although the EC may still launch an “anti-subsidy” investigation, it has stated that this will “not be activated for the time being, to allow the continuation of the negotiations with the Chinese authorities towards an amicable solution”.
The anti-dumping investigation arose due to claims that Chinese vendors were selling products at lower prices in Europe than in China so as to undercut their European competitors. The probe was dropped since according to the EC: “further analysis has shown that the essence of the problems posed by Chinese competition on the EU market lies in the subsidisation of the mobile telecommunications network”.
EU trade commissioner Karl De Gucht was hopeful of reaching a solution “by the next economic and trade committee meeting with China”, which is expected to take place at the “end of June or beginning of July in Brussels”.
