Rumor: Huawei, ZTE May Face EU Scrutiny Over Government Subsidies
Sohu IT, 9/07/10
The Commission of the European Union is considering launching a second round of investigations into whether China is illegally subsidizing domestic wireless modem manufacturers.
Recently, Belgium-based modem vendor Option sued a number of Chinese manufacturers, alleging that some competitors such as Huawei and ZTE (0763.HK; 000063.SZ), which control 90% of the market for 3G data cards and USB modems, are subsidized by the Chinese government, both directly and through state-owned banks.
A spokesperson for the EU Commission's Directorate-General for Trade could not confirm whether an investigation has been launched.
Keywords: overseas wireless 000063.SZ 0763.HK Huawei ZTE 3G European Union Belgium law subsidy litigation data card Europe
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