Huawei answers allegations about its selling prices

Máire Geoghegan-Quinn, Member of the EC in charge of Research, Innovation and Science, received Ren Zhengfei, CEO of the Huawei Technologies.

Máire Geoghegan-Quinn, Member of the EC in charge of Research, Innovation and Science, received Ren Zhengfei, CEO of the Huawei Technologies.

Two major Chinese providers of mobile phone equipment, Huawei Technologies Co. and the smaller ZTE Corporation, according to a Wall Street Journal report are under scrutiny by the European Commission, for allegedly offering their products at dumping prices. This report is still unconfirmed by the EU authorities. Its wording though is very carefully chosen by the WSJ writer, reading as follows, “European officials are now debating whether to take the next step: an investigation that would risk igniting a trade war with Beijing”.

If those unnamed European officials do take this step, the newspaper will be confirmed, but if they don’t take the “risk to ignite a trade war with Beijing”, again WSJ will not be refuted. Thanks to this very careful writing, in either case, the reliable in every other respect newspaper, will not be caught as making news out of its own wishful thinking. Or even worse, the newspaper will not be exposed as exercising undue pressure on the European Commission, to follow Washington in ill-treating the two Chinese companies. Or is it already exposed?

At this point it has to be reminded that last October, the U.S. House of Representatives Intelligence Committee issued a warning, saying that Huawei and ZTE present security risks to United States and asked the American mobile telephony providers, “to seek other vendors for their projects and block acquisitions and mergers involving Huawei and ZTE”.

The problem for the good newspaper is that despite a harsh reaction from Beijing against Washington, Huawei officials played down the whole affair and commented, that their global operations are not at all threatened. Later on Chinese government officials followed in defusing the issue and left to be understood, that it is unthinkable for Beijing to start a trade war with the EU, given the difficult economic conditions all over the globe.

Coming back to Europe only some months ago, Michel Barnier, Member of the European Commission responsible for Internal Market and Services Competitiveness, delivering a speech entitled “the key to growth in a strong Europe” on the occasion of a ceremony staged to award the Charlemagne Prize to the German minister of Economics Wolfgang Schäuble on 16 May 2012, praised Huawei saying that “it has become global champion”.

By the same token, Joaquín Almunia, Vice President of the European Commission responsible for Competition Policy Antitrust enforcement, delivering a speech entitled “Challenges old and new”, on the occasion of the 19th International Competition Law Forum, on 8 June 2012, said:”As to the latest developments, we have received complaints by the Chinese handset manufacturer Huawei against InterDigital – a US-based company“.

If there was the slightest evidence that Huawei was following price dumping practices in the EU, Almunia and Barnier would have avoided siting Huawei as a paradigm company.

In any case the company reassured everybody that its selling prices are similar all over the world, evidently denying that in no case the group is practicing price dumping in the EU. The Brussels’s authorities can very easily verify this statement.

Incidentally, this Chinese mobile telephony equipment and services provider is so deeply implicated in the entire European telecommunications market, cooperating with the largest device providers and network operators to such an extent, that seems impossible for the European Union, to follow the Americans in molesting it. Only recently Clearwire confirmed to the daily newsletter ‘FierceWireless’, that Huawei is one of two firms which are chosen to build its planned TD-LTE network.

A British market analyst went as far as to say that, “UK’s digital future, as well as economic wellbeing are at stake, depending on whether the government deems telecoms giant Huawei Technologies, a cybersecurity threat and blacklists the company, following an investigation”.

The Chinese company is also a linchpin in France’s digital markets. Huawei and France Telecom’s Orange have signed an agreement, to develop jointly smartphones, mobile broadband devices and tablets. The deal covers more projects and aims to merge Orange technology and marketing abilities, with Huawei’s excellent device development and integration qualities.

In short, given the long list of Huawei’s joint ventures in Europe, with almost all major producers and operators, the company cannot be termed any longer as an exclusively Chinese firm.

At the end of the day, it seems that the Europeans will not forfeit the possibilities, Huawei can offer to the entire old Continent’s telecommunications industry. Device co-development, equipment joint production and marketing agreements between Huawei and European firms, can bring the EU’s digital sector, at the cutting edge of world markets.

See WSJ article:

the sting Milestone

Featured Stings

Can we feed everyone without unleashing disaster? Read on

These campaigners want to give a quarter of the UK back to nature

How to build a more resilient and inclusive global system

Stopping antimicrobial resistance would cost just USD 2 per person a year

Germany to re-invent its security position in Europe and a chaotic world

EU Commission indifferent on Court of Auditors’ recommendations

Aid funding for Occupied Palestinian Territories at ‘all-time low’

Commission’s Youth Initiative fails first hurdle by not sufficiently consulting young people

COP21 Breaking News: China has promised to cut emissions from its coal power plants by 60% by 2020

The EU heads of State and Government about the result of the European Elections 2019

European Business Summit 2015: In search of a vision for the future

Our food system is pushing nature to the brink. Here’s what we need to do

European Commission and World Bank Group renew agreement to strengthen development cooperation

Europe’s forests are booming. Here’s why.

Let’s Learn

3 ways to accelerate the energy transition

WEF Davos 2016 LIVE: Banking moguls continue brandishing financial Armageddon to intimidate us all but in Davos they worry about the very distant future

EU migration deal welcomed by UN agencies

To my Chinese friend

We generate 125,000 jumbo jets worth of e-waste every year. Here’s how we can tackle the problem

Trump’s blasting win causes uncertainty and turbulence to the global financial markets

The punishment gap: how workplace mistakes hurt women and minorities most

Development aid drops in 2018, especially to neediest countries

How smartphones can close the global skills gap for billions

How banks should prepare for robots going rogue

UN chief ‘deeply alarmed’ over military offensive in south-west Syria

Restore land to save the planet, boost the economy, says head of UN body combating desertification

Global leaders and companies pledge to reduce the gender pay gap by 2030

Greferendum: the biggest political gaffe in western modern history to tear Europe apart? #Grexit #Graccident

Estonia is making public transport free

JADE Testimonial #3: Sebastian @ Fundraising

Progress in medical research: leading or lagging behind?

Solitary Britain sides with US aggressing Russia and chooses hard Brexit

UN-led Yemen ceasefire monitoring team gets ready to begin operations

Europe on the Move: Commission completes its agenda for safe, clean and connected mobility

FROM THE FIELD: Faces and Voices of Conflict

Margrethe Vestager, European Commissioner for Competition, in Brussels - Berlaymont, last week. (Copyright European Union, 2017 / Source: EC - Audiovisual Service / Photo: Lukasz Kobus)

Amazon, Luxembourg and Ireland hit by EU’s latest turn of the screw over competition

Brexit: European Commission publishes Communication on preparing for the UK’s withdrawal from the EU

4 views on the shape of global cooperation in the time of COVID-19

All for equality – 2020 is a pivotal year for Gender Equality

China Unlimited Special Report: The trip to China

The EU to fight cross-border tax evasion with a toothless directive

EU report: Implementation of reforms continues to bring EU and Ukraine closer together

Global Report on Food Crises reveals scope of food crises as COVID-19 poses new risks to vulnerable countries

Scotland “shows the way” to separatist movements as Catalonia calls a vote on independence

To be fair or to be sustainable? That is the (retirement) question

Trust and support of Iraqis essential for success of UN’s Da’esh terror investigation

EU migration crisis again accentuates lack of unity and solidarity among member states

Parliament votes reform for better European Co2 market but critics want it sooner than later

UN launches new fund to advance sustainable development in Aral Sea region

Here are three key ways that data analytics can improve the workplace

The European Brain Drain: hard facts and harder truths

Seven trends shaping the future of the mining and metals industry

EU Parliament shows its teeth in view of 2014 elections

Germany objects to EU Commission’s plan for a Eurozone bank deposits insurance scheme but Berlin could go along

UN mourns death of former Secretary-General Kofi Annan, ‘a guiding force for good’

From memes to mourning, how Europe is dealing with its darkest hour since World War II

Senior UN official strongly condemns Southern California synagogue attack

EU’s core members are eyeing larger parts of arms trade and of world map

Towards a seamless internal EU market for industrial goods

The Greta effect? Why businesses are more committed to climate action in 2020

Somalia: UN mission head condemns deadly terrorist attacks in Mogadishu, Galkayo

End ‘shame, isolation and segregation’ of fistula sufferers, urges UN reproductive health chief

A health of all and for all based on the Ecuadorian reality

More Stings?


Speak your Mind Here

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s