Reports today indicate that the European Union is commencing anti-dumping investigations on China’s mobile manufacturers Huawei and ZTE. The companies are accused of receiving illegal government subsidies and selling their equipment below cost in Europe – at least according to EU trade standards.
Suspicions loom about Chinese manufacturers in both the US and the EU, and heavy anti-dumping tariff measures have already been levied in the US this month on Chinese solar panel producers.
China has been known to subsidize many of its export industries, and this has inevitably caused tension with many of its largest trading partners. Still, it is worth noting that every country at one time or another tends to engage in these actions in order to prop up its own businesses.
What makes this news particularly interesting is that it curiously coincides with a spate of anti-foreign sentiments in China, as well as a recent row in the US over the visa status of Confucius Institute teachers.
While Huawei and ZTE have not yet commented on the news, it will certainly be an upset for them and could provoke countervailing duties from China.