Europeans Press China Over Trade in Telecom

On May 17, the European trade commissioner, Karel De Gucht, accused Huawei and another Chinese equipment maker, ZTE, of violating the antidumping and subsidies laws of the European Union.

De Gucht called for negotiations between the European Union and China to avoid an investigation that could lead to punitive customs duties. Now the two sides appear set to meet in an attempt to work out their differences. China has asked that De Gucht hold an informal meeting with its vice commerce minister, Zhong Shan, in Brussels. “It appears that the commission is using the telecom equipment situation as some kind of a stick and bargaining chip against China,” said Stuart Newman, an antidumping expert at the Foreign Trade Association, a Brussels group that represents European trade associations. Newman said the Europe-China trade relationship had become more difficult over the last two years, driven by disputes over solar panels and now, telecom equipment.