China threatens trade investigations into EU

China has said that it will fight back against any European Union company if the EU continues investigations into Huawei and ZTE.

It has said if the investigation continues it will launch its own investigations into EU businesses.  

The behemoth has stepped in to protect its babies after the EU said it had “very solid evidence” showing that the two companies were making the most of illegal government subsidies to develop their businesses.

The EU has been keeping a close eye on the two for a good few months, slowly gathering evidence regarding an anti dumping case. It believes that they used illegal government subsidies and sold products in the EU below cost in a bid to trump competitors and give better quotes to organisations looking for services.

There have also been rumours that hardware made by Huawei and ZTE shipped with back doors which would enable government spooks to listen in on communications.

China has maintained that the companies are innocent. Last month it called the EU’s claims “groundless.”

However, at a meeting last week it took its case further claiming that it would go to town on the EU and investigate subsidies given to European agriculture, automotive, renewable energy and telecoms companies if it proceeded with the  investigation.

This seems to have been enough to get the EU to take some time out with the FT reporting that it is unlikely EU Trade Commissioner Karel De Gucht will take action before September.