EU prepares for suit against Huawei, ZTE

EU trade officials told representatives of the group’s 27 member states that they have “very solid evidence” Chinese mobile producers Huawei and ZTE (0763.HKG, 000063.SZ) benefit from illegal government subsidies and have been “dumping” their products, or selling them at below cost, on the EU market, the Financial Times reported. The EU could bring a case against the companies as early as next month, said people familiar with the matter. A successful prosecution could lead to punitive tariffs for the two technology firms. The case represents the first time the EU has charged China with dumping high-tech goods, rather than low-value manufactured products, and that the EU commission has prosecuted Chinese firms without a formal complaint from a company or industry body. The EU trade commissioner said that this “ex-officio” method of prosecution is necessary because private companies fear retaliation by Beijing for publicly complaining about Chinese trade practices.