EU Considering Second Enquiry Into Chinese Modem Subsidies

The European Commission is considering whether to open a second investigation into the prohibited subsidizing of modem manufacturers by the Chinese Government. Option, a Belgium 3G modem maker, raised a complaint in the EU that Chinese companies were dumping wireless modems onto the European market at insanely cheap prices. The complaint alleges that ZTE and Huawei, two manufacturers are subsidized by their Government, which gives them a hugely unfair advantage in the open markets.

During the last investigation, the Chinese Government accused the European Union of protectionism.