Top Posters

Huawei, ZTE deny state subsidies - again

  • Posted by Michael Carroll
  • May 30, 2012 10:10 AM BST
  • 0 comments
  • 1,852 views

I'm in two minds about continued claims and counter claims regarding Huawei and ZTE receiving backing from the Chinese state. This week, we've had reports that the European Union is considering probing subsidies received by the pair, and allegations they 'dump' excess equipment in the European market (in other words, sell stuff off cheaply).

 

While the action would be a first for the EU - it usually only initiates probes following complaints from specific companies - I am growing rather weary of the constant reports that Huawei and ZTE are somehow puppets for the Chinese government, and that their kit is surely riddled with hundreds of security holes that China's government can exploit. The vendors have repeatedly denied doing this, or being backed by the state beyond bank loans and guarantees, and I wonder how many times these reports are going to appear and how many denials, therefore, we expect the firms to issue.

 

On the other hand, perhaps some form of definitive investigation is warranted. At least that way, we can lay the rumor and speculation to rest and establish, clearly, what level of involvement China's government really does have with the pair. The question is, should the EU be the body that conducts that investigation? I mean, surely any findings would be loaded in favor of European vendors - why wouldn't they be?

0 comments