Telecoms probe hurts Chinese, EU interests

BEIJING - The interests of both China and European Union (EU) members will be hurt if the EU adopts trade remedy measures unilaterally on Chinese mobile telecommunications equipment, the Ministry of Commerce (MOC) said on Thursday.

Cooperation between China and the EU in the wireless communications sector has long been mutually beneficial, and EU companies even take a bigger market share in China than Chinese firms do in the eurozone, MOC spokesman Shen Danyang said at a regular press conference.

"Many EU member states disagree with the probe, and the EU's industry circle also opposes it. So we hope that the EU stops doing things that do no good to each other," Shen said.

The remarks came as a Wednesday statement from European Commission said that it had decided to open an anti-dumping and anti-subsidy investigation into mobile telecommunication networks and equipment imported from China.

The commission said it had been agreed in principle to open an anti-dumping and anti-subsidy case, but that it would first seek to negotiate a solution with Chinese authorities.

Shen said the two parties have been in close dialogue and communication on the issue since the second half of last year. Until recently, a European Commission delegation to China had called the exchange constructive, indicating replies will be made according to China's proposed solutions.

However, according to the spokesman, "The EU made the decision without first making replies to China, which has cast suspicion on the EU's sincerity in resolving the issue through consultation."

If the EU insists on launching the probe, China will take firm measures to protect its legitimate interest in line with World Trade Organization rules and Chinese laws, Shen warned.

The side that stirs up the friction should bear the consequences, he added.