China is suspected in illegal sponsoring of tech companies, releasing wireless modems. There was one case and EU Commission is thinking to start up the second detection on this case.
The follow-up investigation comes from Belgium. Authorities received the complaint from Belgium modem producer Option, being the only 3G modem producer in the European Union.
China’s ZTE and Huawei modem producers are considered to be the most popular and widespread. They take 90 percent stake in 3G data cards and USB modems market.
Option company claims that these manufacturers receive illegal sponsorship from the Chinese government and government-owned banks.
Jan Pote, Option spokesman, reported that there is data about Huawei credit line, exceeding acceptable limit and can’t be considered normal. It surely gives the company a considerable privilege over other companies. Option producer assumes that EU law prevents such selling practices; therefore Chinese competitors seem to be undertaking illegal actions. But still the Commission’s Directorate General for Trade is not able to confirm whether the official query will take place at the moment.
In case China is accused by the Commission in any illegal actions it will be charged with bigger import tariffs. Such an investigation will influence on further E.U.-China trade relations and they will become more strained