The European Union’s trade chief will begin seeking support this week for an investigation into alleged unfair trade practices by China’s ZTE (000063.SZ, 0763.HKG) and Huawei Technologies, The Wall Street Journal reported. While no EU company has lodged a complaint, regulators have suggested that Chinese telecommunication equipment makers are able to sell their equipment at unfairly low prices due to hefty subsidies from China’s government. ZTE’s and Huawei’s competitors in Europe, namely Ericsson (ERIC.NASDAQ, ERCB.FRA) and Alcatel-Lucent (ALU.NYSE, ALU.EPA) have expressed concern that a probe and possible sanctions by EU regulators could provoke retaliation from government-controlled Chinese operators.
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