Huawei rejects EU dumping, subsidy charges

BEIJING - A company advisor to Chinese telecommunications equipment giant Huawei denied accusations that the company has received government subsidies or dumped products in EU countries.

"Huawei's products may have a price advantage, but it was gained via technological innovation, rather than through subsidies or dumping," company advisor Tian Tao was quoted as saying in Thursday's 21st Century Economic Report.

Huawei's rejection of EU charges came after the EU proposed opening an anti-dumping and anti-subsidy investigation into mobile telecommunications equipment from China last week.

The move is believed to be aimed at Huawei and ZTE, China's two biggest telecoms system and equipment producers.

"The cost advantage gained through technological innovation has brought Huawei bigger profits," Tian said.

Huawei CEO Ren Zhengfei said previously that the company's technological breakthroughs have allowed them to cut costs by up to 50 percent in some cases.

Huawei has a heavy presence in Europe, including 13 research centers set up in the continent. Last September, Ren announced a $2 billion investment plan to expand Huawei's operations in Britain.

Tian said Huawei will take a moderate and constructive attitude toward the EU proposals, as the European market is more important than the US market in Huawei's global strategy, according to the newspaper.

Huawei has attached great importance to the European market, where telecom giants like Ericsson, Alcatel-Lucent and Nokia are based.

Ren once said that Huawei will make it clear to competitors that the company is "not jeopardizing, but safeguarding rules."

Tian welcomed competition from European rivals in China's market, saying competition will encourage Chinese service providers to come up with high-quality, low-cost systems.

He said cooperation with EU companies will facilitate Chinese exports of 4G products to the North American and European markets, adding that the participation of European companies in China's LTE-TDD network construction will help the standard go global.

LTE-TDD, or Long Term Evolution-Time Division Duplex, is one of two key types of 4G LTE technology. China is a major promoter of the LTE-TDD standard and owns many of the standard's core patents.

Recent reports indicate that the EU's planned anti-dumping and anti-subsidy probe is not backed by European telecom giants. Ericsson, Alcatel-Lucent and Nokia have voiced opposition to investigations targeting Chinese companies. Last October, related probes were postponed due to the absence of the plaintiff.

Lyu Benfu, a professor from the Chinese Academy of Sciences, said the telecom sector has been a bright spot of the EU economy amid its continued economic slump.

If the EU's moves lead to the closure of the Chinese market, that will affect the interests of EU telecom companies, Lyu said.

European companies currently occupy 50 percent of China's telecom market, while Huawei and ZTE only account for 20 percent of the market share in the eurozone, according to figures from Huawei.

"Both sides should open the market, rather than create barriers," Lyu said.