EU pact to help telecom vendors in China flounders - report

A European Union plan to help shield telecommunications-equipment companies from cheaper Chinese rivals is floundering, EU and industry officials told the Wall Street Journal. A 2014 pact between the EU and China saw Brussels drop the threat of import tariffs on gear made by Huawei and ZTE in exchange for Beijing agreeing to a number of measures aimed at helping European vendors such as Ericsson and Nokia secure more Chinese business. 

The proposed measures included setting up an independent commission to monitor telecommunications-equipment markets. The panel was supposed to identify practices like dumping and ensure European access to the Chinese market. However, nearly two years after the pact was signed, the body has yet to be set up. China hasn’t provided funds for it and has rejected a demand by the EU that panel members have no ties to the government, one EU official said. 

In July, the EU complained about the telecom-equipment deal at a high-level meeting with Chinese counterparts in Beijing, people familiar with the situation told the paper. But one EU official said the impasse with China is unlikely to be resolved soon. China’s Ministry of Commerce didn’t respond to a request for comment.