BRUSSELS: A senior EU official says China may be illegally dumping and subsidizing the import into Europe of mobile telephone networks and their essential elements. But Competition Commissioner Karel De Gucht says an official investigation, while approved by the European Commission, won't be launched now as officials seek an amicable resolution.
Wednesday's announcement came as the Commission, the EU's executive arm, is nearing the end of an investigation into whether China illegally dumped solar panels into the EU.
The Commission said China's export of telecommunication network equipment to the EU market amounts to 1 billion euros ($1.3 billion) per year.
If items are "dumped" at artificially low prices, or are supported by banned government subsidies, that can put companies inside the EU that follow the rules at an unfair competitive advantage.
Ceramics dumping
The EU earlier said it will impose punitive duties on Chinese imports of ceramic tableware and kitchenware to counter what it says is dumping at artificially low prices to crowd out local products.
Chinese producers will be subject to tariffs of between 13.1 and 36.1 percent from Thursday, according to a publication in the EU’s official journal. Such tariffs are normally valid for five years, but can be extended.
Ceramic tableware and kitchenware imports from China totaled 728 million euros ($944.8 million) in 2011, according to the European Commission, which is investigating 31 dumping and subsidies cases, 18 of them involving China.
The Commission launched its largest case last September over the alleged dumping by Chinese producers of 21 billion euros of solar panels and components, and said on Wednesday it was ready to launch an investigation into Chinese imports of mobile telecoms equipment.
The Brussels-based Foreign Trade Association has said consumers would likely face a rise in prices as a result of higher duties imposed to prevent dumping.
The European Ceramic Industry Association and the European Federation for Table- and Ornamentalware, which brought the initial complaint, said dumped Chinese imports caused the loss of 10,000 jobs among EU producers in the past five years.
They added that provisional duties imposed in November to counter dumping of ceramics products had already allowed some EU companies, most of them small- and medium-sized, to increase production and headcount.
