EU escalating telecom dispute to harm trade ties

Chinese experts said the European Commission's planned anti-dumping and anti-subsidy probes into mobile telecommunications equipment imports from China will escalate bilateral trade tensions.

The investigations, announced last week following the commission's decision to impose hefty taxes on Chinese solar panels earlier this month, could create turbulence in Sino-European economic and trade relations, said Sang Baichuan, a professor of international economics at the Beijing-based University of International Business and Economics.

The move is widely believed to be aimed at Huawei and ZTE, two of the world's biggest telecom equipment manufacturers.

Statistics show that Europe accounts for 15 percent of Huawei's overseas business.

Both companies have refuted accusations of using anti-competitive practices, saying they have obtained a price advantage via improved technology and efficiency rather than illegal government subsidies.

Data shows that Chinese manufacturers annually export telecom products worth more than 1 billion euros to the EU.