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!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

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

Breitling Superocean Heritage Chronographe 44

Learn more >

SanDisk MicroSDXC™ for Nintendo® Switch™

Learn more >

Toys for Boys

Family Friendly

Panasonic 4K UHD Blu-Ray Player and Full HD Recorder with Netflix - UBT1GL-K

Learn more >

Stocking Stuffer

Razer DeathAdder Expert Ergonomic Gaming Mouse

Learn more >

Christmas Gift Guide

Click for more ›

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?