The China Chamber of Commerce for Import and Export of Machinery and Electronic Products (CCCME) said the Chinese companies involved in the investigation are "extremely shocked" and are actively defending themselves in the investigation. "Many of the wireless modems imported from China are sold at a higher price than those made in Europe," said Wang Guiqing, VP of CCCME. "The EU's investigation is a move that kills market innovation."
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It is understood that it could take between 12 and 15 months to complete the investigation. Pending the outcome, the Commission may take temporary anti-dumping measures. Experts say that safeguard measures to increase duties and impose quotas are easier to invoke than anti-dumping claims, as proof is not required. If the commission finds that products are being dumped at unfair prices, further tariffs can be imposed.
According to statistics, Huawei accounts for about 40% of global market share in data cards while ZTE has 35%. In 2009, worldwide sales of data cards reached 80 million, with Huawei shipping some 35 million. In some EU countries Huawei has over 70% share of the data card market. Europe's largest mobile network, Vodafone, has publicly said that Huawei data cards are already "in short supply."
Huawei's share in the European market is significantly larger than ZTE's; according to the anti-dumping investigation, ZTE's share is $300 million versus $3 billion for Huawei. Last week, China's Ministry of Commerce estimated the case involves about $4.1 billion worth of goods, but CCCME's Wang said the real value of goods impacted by the case is closer to $2 billion.
"But that is big enough to make it the biggest foreign probe into China's high-tech exports," Wang said.
China's Ministry of Commerce has complained about the investigation, saying that it will not only harm China's interests and its development of science and technology, but will also impede the European Union's economic recovery. The ministry describes the measures as trade protectionism and an abuse of the norms of international trade, arguing it reserves the right to take further measures.
Additionally, Chinese equipment manufacturers have set up their own special team, working closely with the CCCME in response to the investigation.
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