EU trade chief says telecoms dispute with China resolved

EU Trade Chief Karel De Gucht stated on Tuesday that an agreement regarding the long-running dispute over Chinese exports of telecoms equipment has been reached, Reuters reported. One of the most divisive issues between the major trade partners, the dispute revolves around the US$1bn of imports by the Chinese companies Huawei (002502.SHE) and ZTE. Huawei’s share of the European telecoms equipment market has risen from 2.5% in 2006 to 25% today, with prices some 18% below those of European rivals. Though the details are yet to be released, sources told Reuters last week that Beijing was considering a deal in which China would promise to limit export credits to Huawei and ZTE.