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EU mulls trade measures against Huawei, ZTE

EU trade ministers met to discuss action against Chinese telecom equipment makers Huawei and ZTE Corp (000063.SH, 0763.HKG), which they say receive illegal state subsidies to undercut European rivals such as Alcatel-Lucent (ALU.NYSE, ALU.EPA) and Nokia-Siemens, Reuters reported. Chinese Commerce Minister Chen Deming declined to comment on the case during a visit to Brussels, but said that China was ready to “work together with Europe and advance cooperation.” EU trade ministers said they are considering launching more trade cases against China “ex officio,” meaning that the trade commission, rather than companies themselves, would lodge the complaint. European companies say that they risk retaliation from the Chinese government for openly complaining about Chinese practices. The US has also taken action against Chinese trade practices in recent weeks, imposing preliminary duties on solar panels, steel products and wind towers.

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