Huawei, ZTE deny dumping claims

Huawei and ZTE denied receiving illegal government subsidies that helped them undercut rivals in recent years, after report that the European Union planned to take action over unfair trade practices. The Financial Times quoted unidentified EU officials and executives as saying the Commission had been gathering evidence to show Huawei and ZTE had used subsidies to allow them to sell goods below cost in the EU. 

A spokesman for EU trade chief Karel De Gucht told Reuters that he could not confirm the contents of the FT report. Both companies said they had not been contacted by the EU. "We deny claims made in the media that Huawei employs dumping practices and has benefited from illegal state subsidies," Huawei said. ZTE said it "receives no illegal or hidden subsidies, nor does it dump products in any markets where it operates". 

Ericsson, the world's biggest seller of mobile equipment, said it did not support any EU move and had not prompted it to act. "The EU faces the risk of initiating a negative spiral by targeting individual firms," Ulf Pehrsson, head of government and industry relations at Ericsson, said in a statement to Reuters. "Ericsson is a strong supporter of free trade and we don't believe in this type of unilateral measure." Nokia Siemens Networks and Alcatel-Lucent declined to comment.