Wednesday, May 15, 2013

European Commission threatens trade duties against China's Huawei, ZTE - sources

The European Commission plans to send a formal warning to China that it is ready to levy trade duties against telecoms equipment makers Huawei Technologies Co Ltd and ZTE Corp over what it says are illegal subsidies, people close to the matter said.

EU trade chief Karel De Gucht is set to win support from the bloc's executive on Wednesday to send the warning letter and show China's new president, Xi Jinping, that Brussels is serious about countering what it says is state support.

"We want to send a warning to the Chinese, a letter of intent that if they don't change their practices, there will be duties," said one person involved, adding that De Gucht had the full backing of European Commission President Jose Manuel Barroso.

http://www.reuters.com/article/2013/05/15/us-eu-china-huawei-idUSBRE94D0RX20130515