EU to investigate Chinese TELCO gear makers

The European Union is picking another trade fight with China. The European Commission said on Wednesday it was ready to launch an investigation into Chinese teleco gear makers.

The EU Trade Commission said they would first seek negotiations, but agreed to open an anti-dumping and anti-subsidy case if talks failed. Analysts say this marks a new twist in the EU's trade defence, as it would be launched by an organization, but does not respond to an industry complaint. Although no names were mentioned by the EU, Huawai and ZTE, two of China's largest equipment vendors, are likely to be on the investigation list. Currently, there are more than 30 trade probes in the EU, and 18 of them involve China.