EU to warn Beijing of potential telecom duties

The EU’s top executive body is preparing to warn Beijing that it may place tariffs on major Chinese telecom equipment makers Huawei Technologies and ZTE for allegedly receiving illegal subsidies, Reuters said, citing people close to the matter. The European Commission will grant its support today to send a formal warning letter to China that sanctions may be imposed on the companies, the anonymous sources said. A Huawei spokeswoman declined to comment. The firm has denied that it receives illegal subsidies. The move would follow the commission’s decision to impose duties on Chinese solar makers for dumping their products in Europe.