AAPL Stock: 117.81 ( -0.22 )

Printed from

Huawei, ZTE deny illegal subsidies

updated 06:44 pm EDT, Tue May 29, 2012

Chinese companies push back against rumored EU action

Chinese telecom hardware manufacturers Huawei and ZTE have denied receiving any illegal subsidies from the government of China, Reuters reports today. The two cellphone makers have come under fire for alleged unfair trade practices and now are rumored to face impending punitive action from European Union regulators.

The EU's executive arm is said to have spent the last several months compiling evidence that Huawei and ZTE have received subsidies from the Chinese government. These subsidies, the regulators allege, have allowed the companies to sell their products for lower cost on the European market, making it more difficult for European technology firms to compete.

The EU is expected to come forth with its findings and recommendations for action in the coming weeks. The case marks the first time that the EU's executive arm has taken such action without prompting from a trade group or private company.

Both companies have denied the accusations to the press. ZTE says it receives "no illegal or hidden subsidies" and does not "dump products" in markets where it operates. Huawei has also categorically denied dumping products and receiving state subsidies.

The case was opened by EU regulators of their own volition, but a number of European tech manufacturers have expressed concerns over the possibility of reprisals in the Chinese market. It is thought by some that punitive actions taken on the part of the EU could lead to difficulties for western companies looking to make deals and expand in China.

by MacNN Staff



Login Here

Not a member of the MacNN forums? Register now for free.


Network Headlines

Follow us on Facebook


Most Popular


Recent Reviews

Ultimate Ears Megaboom Bluetooth Speaker

Ultimate Ears (now owned by Logitech) has found great success in the marketplace with its "Boom" series of Bluetooth speakers, a mod ...

Kinivo URBN Premium Bluetooth Headphones

We love music, and we're willing to bet that you do, too. If you're like us, you probably spend a good portion of your time wearing ...

Jamstik+ MIDI Controller

For a long time the MIDI world has been dominated by keyboard-inspired controllers. Times are changing however, and we are slowly star ...


Most Commented