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EU to warn China it may levy sanctions against Huawei

Published on May 15, 2013 12:48 PM
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BRUSSELS (REUTERS) - The European Commission plans to send a formal warning to China that it is ready to levy sanctions against telecoms equipment makers Huawei and ZTE Corp over illegal subsidies, people close to the matter said.

EU trade chief Karel De Gucht is set to win support from the bloc's executive on Wednesday to send the warning letter and show China's new president, Xi Jinping, that Brussels is serious about countering what it says is state support.

"We want to send a warning to the Chinese, a letter of intent that if they don't change their practices, there will be duties," said one person involved, adding that Mr De Gucht had the full backing of European Commission President Jose Manuel Barroso.

The decision will mark an intensification of the European Union's efforts to guard against what Brussels says is dumping by China, the EU's second-largest trading partner.

 
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