EC to Investigate Huawei and ZTE

May 15, 2013. The European Commission's (EC) Trade Commissioner, Karel De Gucht, announced in a release that the EC has decided "to open an ex officio anti-dumping and an anti-subsidy investigation concerning imports of mobile telecommunications networks and their essential elements from China".

De Gucht (at right) added, however, that "This decision will not be activated for the time being to allow for negotiations towards an amicable solution with the Chinese authorities."

This release adds that "An ex officio trade defence action allows the European Commission to launch a trade defence investigation on its own initiative without an official complaint by the EU industry. This possibility is particularly important as it offers a 'shield' when the risk of retaliation against European companies asking for trade defence instruments is high. Such an action can be focused on either an anti-dumping or anti-subsidy investigation or both."

Also, the House Commerce Committee (HCC) announced that its Subcommittee on Communications and Technology (SCT) will hold a hearing on Tuesday, May 21, 2013, titled "Cybersecurity: An Examination of the Communications Supply Chain". See, notice.

Both announcements are directed at companies based in the People's Republic of China (PRC), including Huawei and ZTE.

See also, stories titled:

• "Legislators Write Genachowski Regarding FCC Authority to Regulate Purchase of Telecom Equipment from PRC" in TLJ Daily E-Mail Alert No. 2,142, October 19, 2010.
• "House Intelligence Committee Launches Investigation of Huawei" in TLJ Daily E-Mail Alert No. 2,313, October 22, 2011.
• "SASC Approves Defense Authorization Bill with Cyber Warfare and ICT Provisions" in TLJ Daily E-Mail Alert No. 2,397, June 15, 2012.
• "US China Commission Reports that PRC Uses Foreign Assistance to Promote Its Telecom Sector" in TLJ Daily E-Mail Alert No. 2,300, September 13, 2011.
• "Rep. Rogers and Rep. Ruppersburger Write Huawei and ZTE and About Ties to PRC Government" in TLJ Daily E-Mail Alert No. 2,395, June 13, 2012.
• "House Intelligence Committee Report Finds Huawei and ZTE Could Undermine US National Security" in TLJ Daily E-Mail Alert No. 2,461, October 15, 2012.

The PRC government and some PRC based companies have given other governments cause for concern regarding government subsidies and security threats. However, there is also an element of trade protectionism in the responses of the US and EC.

(Published in TLJ Daily E-Mail Alert No. 2,562, May 15, 2013.)