ZTE dismisses EU subsidy probe talk

Michael Carroll
22 May 2013

Chinese vendor ZTE is offering a robust defense against a potential EU subsidy probe, despite admitting receiving no official notice of an investigation.

In a statement released yesterday, the firm dismissed reports of a probe into state subsidies and dumping of telecoms equipment by it and domestic rival Huawei as media speculation, and noted it has not had contact with any authorities regarding an investigation.

ZTE again denied receiving “illegal or hidden subsidies,” or dumping products in any of the markets it operates. It also states its commitment to “transparent operations,” and complying with local and World Trade Organization regulations.

European Union trade commissioner, Karel De Gucht, last week named ZTE and Huawei in connection with a potential probe into alleged Chinese state subsidies for the pair – the first time the duo had been officially linked to the wrangle.

The commissioner believes the vendors use subsidies to enable them to dump telecoms kit into Europe, and warned an investigation is possible if negotiations with China fail.

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