Telecom Lead Europe: After facing several security
related issues in Australia, Iran, India and the U.S, Chinese telecom equipment
makers ZTE and Huawei have found themselves in fresh rounds of allegations in
the European market.
The European Union is going to begin a major trade case
against these telecom equipment makers, arguing that they have benefited from
illegal government subsidies.
The union alleged that these companies have obtained
illegal government subsidies and sold products in the EU below cost. The union
has also told member states that it had been gathering evidence for an
anti-dumping case against Huawei Technologies Co Ltd and ZTE Corp.
Once the EU determined that China was acting illegally,
Huawei and ZTE, the world’s No.2 and No.5 telecom equipment makers, could be
subject to punitive EU tariffs, reported Financial Times.
Huawei and ZTE compete globally in the telecom equipment
business with European vendors such as Ericsson, Alcatel-Lucent and
Siemens-Nokia.
Earlier in May, the EU’s Trade Commissioner Karel De
Gucht said the EU was planning new trade defenses to counter subsidies and
dumping by trading partners, such as China.
Australia bans Huawei from broadband network bid
The federal government of Australia banned Huawei from
participating in multibillion- dollar tenders to supply equipment to broadband
network. Concerns over cyber attacks originating in China are the main reason
for banning Huawei.
Huawei and ZTE face more issues in American telecom market
Recently, in the U.S, congressional panels gave green
signal to a measure designed to search and clear the U.S. nuclear-weapons
complex of technology produced by Chinese telecom equipment makers that have
been accused of working closely with China’s government and military.
Huawei and ZTE were mentioned in the measure, adopted by
the Republican-led House of Representatives’ Armed Services Strategic Forces
subcommittee, as part of the 2013 defense authorization bill.
Huawei feels the heat in Iran telecom market
Ealier in 2011, United Against Nuclear Iran (UANI), an
independent agency, urged Huawei to end its business in Iran. UANI alleges that
Huawei provides Iranian regime with cellular and electronic technology that it
has used to conduct surveillance on its citizens, and track down human rights
activists and dissidents.
editor@telecomlead.com
