EU probes Chinese subsidies to Huawei and ZTE

Telco equipment giants Huawei and ZTE could be facing a European Union investigation into whether the firms have benefited from subsidies by the Chinese government.

Huawei and ZTE have been making inroads into the telecom equipment market, winning major contracts due in large part to the competitive pricing the two firms put forward. But now the European Union will launch a trade case against Huawei and ZTE claiming that the two firms have received illegal government subsidies.

According to reports, the European Union has told member states that it has been gathering evidence against Huawei and ZTE, claiming the two firms have been receiving government subsidies that allowed them to sell products below cost. The European Union has been considering new ways to combat what is known as dumping and subsidies by countries such as China.

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