ZTE and Huawei will be fined in Europe for being too cheap phones

The European Union started legal proceedings against the Chinese company ZTE and Huawei. The reason for this step are suspicions that these companies receive illegal subsidies from the Chinese government, which allows them to put too low a price for their products. Representatives of the States of the European Union noted that there are clear cases of dumping by Chinese companies referred to when the equipment is sold below market value. In the event that will be formally proved that such pricing was achieved through illegal government subsidies, then these producers will face a fine. ZTE's representatives in Europe declined to comment, but from the evasive Huawei received a message stating that at this time to comment still nothing. On the world market these companies compete with European manufacturers Siemens-Nokia, Ericsson and Alcatel-Lucent. Earlier this month, the European Commissioner for Trade Karel De Gucht (Karel De Gucht) reported that the European Union plans to introduce several new protective barriers against the subsidies, which are some of the partners and competitors are European companies. Among them were named, and the representatives of China. Regarding the latter Karel De Gucht said that "China subsidizes virtually everything" that makes the competition with Chinese goods difficult.