InterDigital Inc (IDCC)

[Gamco]

EU, China settle subsidy dispute
By Nick Wood, Total Telecom
Monday 20 October 2014

Independent body to monitor Chinese, European telco markets; both sides to cooperate on guidelines for export credits.

The European Union and China on Monday settled their long-running dispute over alleged state subsidies given to telco equipment makers Huawei and ZTE.

Talks concluded late last week with both sides agreeing to appoint an independent body to monitor goings on in the Chinese and EU telco network markets. The deal will also guarantee that European companies have access to Chinese standards bodies, and that there will be no discrimination when it comes to companies from the EU or China bidding for publicly-funded R&D projects. In addition, Brussels and Beijing will work together to advance guidelines under development by the International Working Group on Export Credits.

The announcement follows a report earlier this month by Reuters that claimed the EU and China were close to reaching a deal.

"I am pleased that the EU and China have resolved the telecoms case. The EU pursues every opportunity to level out the playing field for our companies by engaging with our strategic partners including China," said EU trade commissioner Karl De Gucht, in a statement.

In May last year the European Commission confirmed plans to open an anti-dumping and anti-subsidy investigations to ascertain whether telecoms equipment from China had been sold in the EU at lower than cost, and whether Chinese vendors had received state subsidies enabling them to sell cheap kit.

In March, the EU revealed that it would not pursue the anti-dumping part of the investigation, but reiterated its intention to carry out the anti-subsidy probe. At the same time, it insisted that it was keen to maintain open dialogue with Beijing with a view to settling the dispute.

"The concerns that led us to launch the case last May can now be addressed in a systematic and regular dialogue between the two sides for the benefit of our industry," said De Gucht on Monday.

http://www.totaltele.com/view.aspx?ID=487865