After facing security concerns in the US, Chinese telecommunications equipment makers Huawei and ZTE are now facing the European Commission after complaints from European rivals over receiving state aid. According to reports, domestic rivals feel that state subsidies given to the two companies “undercut” them, but have refused to file an official complaint with the Commission or cooperate with the watchdog for fear of being shut-out of the market in China. Manufacturers Ericsson, Alcatel-Lucent and Nokia Siemens Networks have made the allegations against the Chinese firms; Huawei, the world’s second-largest telecom electronics maker behind Ericsson, denies having received any unfair advantage from state subsidies.
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