EU and China end telecoms row as EU drops threats against Huawei

Reuters News
Posted: Oct 20, 2014 6:02 AM

BRUSSELS (Reuters) - The European Union has ended a long-running telecoms row with China, the EU's trade chief said on Monday, dropping a threat to levy punitive tariffs on Chinese telecoms exports and easing tensions between two of the world's top trading powers.

As Reuters reported exclusively on Oct. 8, the deal struck between Brussels and Beijing sets out a framework for China to address EU concerns about subsidies to Huawei [HWT.UL], China's No. 2 telecoms equipment maker, and ZTE.

Resolving the dispute marks the latest step in improving trade relations that were helped by a visit by China's President Xi Jinping to Brussels in March and that Beijing hopes will eventually pave the way for a free-trade deal between the two.

"The EU and China have resolved the telecoms case," the EU's Trade Commissioner Karel De Gucht said in a statement.

"The EU pursues every opportunity to level out the playing field for our companies by engaging with our strategic partners including China," De Gucht said.

(Reporting by Robin Emmott)