AN internal study by China s Ministry of Commerce found the European Union and its member states have offered large subsidies to major telecommunications infrastructure companies, a practice that China views as being in breach of World Trade Organization rules, a person familiar with the matter told Dow Jones Newswires yesterday.
The move follows a recent investigation by the EU found that major Chinese telecom equipment makers, such as Huawei and ZTE, have benefited from significant financial support from the Chinese Government.
The study by China s Ministry of Commerce found Brussels had granted a total of 9.1 billion euros (US$12.49 billion) worth of research and development funding to three large European telecom infrastructure manufacturers for the 2007-2013 period, said the person familiar with the matter, who declined to be named. The study also accuses the relevant EU member countries of providing substantial subsidies to Nokia Siemens Networks and Telefon AB L.M. Ericsson, the person said.
(SD-Agencies)
