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China Hopeful the EU Wont Block Imports of Wireless Modems

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The Chinese government is hopeful that the European Commission (EC) will stop an investigation into Chinese wireless wide area networking (WWAN) modems, Commerce Minister Chen Deming said Tuesday.

"We hope the EC will support the China-EU business cooperation and make a prompt decision to stop the three types of trade investigation. The Chinese government will continue to keep an eye on the issue," Chen told reporters on the sidelines of the third China-EU High-Level Economic and Trade Dialogue held in Beijing.

The EU opened an anti-subsidy probe into WWAN modems imported from China in September after it initiated an anti-dumping investigation and a safeguard measure probe into the modems in June.

The complaint behind the three probes was laid by Belgium's modem-maker Option, the sole producer of WWAN modems in the EU. It had been alleged that China unfairly subsidies wireless modem makers such as Huawei Technologies and ZTE. However, Option later dropped its anti-dumping and anti-subsidy complaints after securing a commercial agreement with Huawei.

"China is very concerned with the issue because it involves a great amount of money and comes under three types of investigation," Chen said. It is the first time that a single Chinese product has simultaneously come under three types of trade investigation by the EU, and involves over USD4 billion in exports.

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Tags: option  huawei  zte  eu  wireless  modems  China  Belgium