Sweden’s trade minister, Ewa Bjorling has said that a probe by the European Commission into allegations of illegal state subsidies by the Chinese government for Huawei and ZTE could harm European manufacturers.
She said that she is concerned that there could be retaliatory measures taken by the Chinese government if the EU imposes tariffs on Huawei and ZTE imports, which would hurt Sweden based Ericsson.
“While Chinese companies’ share of the EU’s wireless equipment market is 30%, one has to remember that the EU’s share of China’s wireless equipment market is 45%. So if China were to hit us back with similar measures, it would hurt us more than what it would hurt them,” she told Dow Jones Newswire.
It was reported over the weekend that an EU investigation had found evidence of state subsidies for the two Chinese firms, although they strongly denied the allegations.
Bjorling said that even if the EU proves the allegations are correct, it would be better to engage in dialog to resolve the matter than to impose import duties on their products.