Intensive discussions between
the European Commission and the Chinese government were concluded by an
amicable settlement on the trade defence investigation into Chinese
telecoms. Today, the Commission took the official decision that it no
longer considers it necessary to pursue this investigation.
The talks culminated on 18
October at the EU-China Joint Committee, chaired by Commissioner Karel
De Gucht and Minister of Commerce Gao Hucheng. The Joint Committee is a
regular event on the EU – China trade meetings’ calendar, attesting to
the importance both sides attach to their trading relationship. The
meeting discussed a number of issues on the bilateral trade agenda, with
a focus on areas where relations can be strengthened such investment
and cooperation on important multilateral and plurilateral initiatives.
Regarding telecoms, the main points of the settlement include:
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Tasking an independent body with the monitoring of the Chinese and EU telecoms networks markets
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Guaranteeing access to the relevant Chinese standard setting body for European companies without discrimination.
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Equal treatment of companies bidding for publically funded research and development projects
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The EU and China will also advance the work of the International Working Group on Export Credits, whose objective is to adopt sectoral and horizontal disciplines in the field.
EU Trade Commissioner Karel De Gucht said: “I
am pleased that the EU and China have resolved the telecoms case. The
EU pursues every opportunity to level out the playing field for our
companies by engaging with our strategic partners including China. The
concerns that have led us to launch the case last May can now be
addressed in a systematic and regular dialogue between the two sides for
the benefit of our industry.”
In procedural terms, today’s action concerns the decision in principle of 15 May 2013 to open an ex officio
anti-dumping and an anti-subsidy investigation concerning imports of
mobile telecommunications networks and their essential elements from
China. On 27 March 2014, the Commission already repealed the part
relating to the anti-dumping investigation, following today with
anti-subsidy. Together, these two decisions mean that the investigation
into mobile telecommunications networks from China will not be pursued.
Background...
Which products would have been concerned by this ex officio investigation?
The product would have been
mobile telecommunications networks and their essential elements (i.e.
radio access network and mobile network core) designed and configured to
fulfil the requirements of the EU telecommunications service providers,
regardless of technology (2G, 3G, 4G, or any future technologies),
whether completely or partly assembled or unassembled at the time of
shipment and with or without dedicated software. Mobile
telecommunication networks are used by telecommunications service
providers to transmit, receive and transport wireless voice and data
messages, manage the network and enable the provision of communications
and data services and applications. The end-user equipment (e.g.
telephones, modems) was not covered.
What is the current value of such telecommunication network equipment exports from China into the EU?
China exports telecommunication
network equipment to the EU market with a value of approximately just
over 1 billion euros per year.
What is an ex officio trade defence case?
An ex officio trade defence
action allows the European Commission to launch a trade defence
investigation on its own initiative without an official complaint by the
EU industry. Such an action can be focused on either an anti-dumping or
anti-subsidy investigation or both. Any launch of such an investigation
is supported by prima facie evidence of unfair international trade
practice and the economic difficulties caused by it.
What are trade defence instruments (TDIs)?
Trade defence instruments
address unfair practices occurring in international trade. Anti-dumping
is the most frequently used form of trade defence. According to the
World Trade Organisation (WTO), all its members, including the EU, have
the right in some well-defined situations to impose additional duties on
imported products to prevent damage to their domestic industry. The
European Commission investigates any allegations and, if justified,
proposes antidumping or anti-subsidy measures.
