The eu will send a formal warning letter this week: huawei, zte proposed sanctions

Beijing time on May 15, the morning news, according to Reuters news agency reported on Tuesday, a source familiar with the situation, according to the European commission plans to the Chinese authorities have issued a formal warning, says it is prepared to illegal subsidies to huawei and zte to sanctions.

sources, the eu trade commissioner Karel De Gucht (Karel De Gucht) will win the support of the European commission on Wednesday, the Chinese authorities have issued a formal warning letter, showed his in resisting is referred to as the “national support” on the issue of its solemn position. A source said: “I want to issue a letter of intent for the Chinese, warned that if they don’t change their behavior, then it will face tariffs (sanctions).” The source also said that Mr DE gucht has won the European commission President Jose Manuel Barroso (, Jose Manuel Barroso) full support.

the decision would mean that the eu to boycott the so-called “dumping” in China and efforts will be increasingly fierce. After also has the eu officials told Reuters, starting in June this year, the commission will also for billions of dollars worth of solar panels from China to impose tariffs. At present, China is the eu’s second largest trading partner.

Security risks

in less than a decade ago, huawei is a little known telecom company; But today, huawei and zte have taken control of nearly a quarter of the European market. The commission believes that this kind of circumstance to take to the security risk, because from health care to the public water facilities such as the eu industries have become dependent on the wireless technology in China. Suggest an internal report last year, the European Union, said the eu should adopt take measures against China’s wireless equipment manufacturers, the reason is that the companies in the mobile market dominance is enhanced, thus bring a security risk, but also to the European Union’s local companies formed a threat.

in Brussels huawei spokesman declined to comment, but the company denied that are being unfair subsidies. Huawei, said the company’s products can occupy the dominant position, because of lower manufacturing costs, and product safety is higher. Zte spokesman did not comment on Tuesday, but also denied the allegations of illegal subsidy.

DE gucht said in an interview with Reuters in February, China’s mobile telecom network market share is growing, it feels very worried. He was pointed out that the United States and Australia have been actually huawei blockade in outside their own market. Last year, Germany has also refused by huawei to provide a national academic research network infrastructure.

eu internal divisions

but at the same time, European manufacturers such as Ericsson, alcatel-lucent and NSN to worry that if these companies to help promote countervailing case, China may be retaliatory action. As a result, the European commission has been focusing on launch anti-subsidy cases according to their own plan, and maintain the collect relevant evidence of huawei and zte. In addition, the eu issues in telecommunications, between this meansthe DE gucht had to be careful. Britain and the Netherlands are very welcome to huawei, the reason is the company for its create lots of jobs; Meanwhile, France and Italy are always support DE gucht sanctions against the company in line.

, European officials said they now have the Chinese authorities at hand subsidized the relevant evidence. A known as the European commission idea sources point out: “the decision tomorrow will be a political decision. Basically, we already have all you need evidence, so there is no need to launch investigation.”

huawei spokesman Tina Tsai, said the company had offered to hold talks with European commission for many times, but it was rejected. She said: “we are happy to negotiate with shareholders, because a lot of times there are misunderstandings and illusion. Because of this, we have always been very keen to start negotiations with all shareholders.”