A World Trade Organization case is brewing against China’s policies for export credits, or the loans or loan guarantees it issues for domestic exporters, the Wall Street Journal reported. The European Commission has been examining whether China’s export credit policies violate WTO rules on government subsidies and is prepared to bring a case against China if a European Union company lodges a justified complaint, EU trade chief Karel De Gucht said in a statement earlier this week. The statement was issued in response to a question from the European Parliament on behalf of a UK technology firm, who complained that export credits allowed its Chinese counterparts to give away free equipment to secure a contract. European telecom equipment makers including Telefon AB L.M. Ericsson (ERIC.OMX, ERIC.NASDAQ), Nokia Siemens Networks and Alcatel-Lucent (ALU.EPA) have faced tough competition in recent years from Chinese companies like Huawei Technologies and ZTE Corporation (000063.SH, 0763.HK).