WASHINGTON — Europe has formally warned China over its improper and unfair business practices. The European Union’s (EU) European Commission is going to send a formal warning to China over its illegal subsidies to several of its corporations.
Telecommunications equipment makers Huawei and ZTE Corporation are under scrutiny because they receive state subsidies. It has also affected their relations with other countries, especially when they have been accused of cyber espionage  by the U.S.
EU’s trade chief Karel De Gucht expects to receive support from the EU’s chief executive commission. In the words of the commission’s president, Jose Manuel Barroso, “We want to send a warning to the Chinese, a letter of intent that if they don’t change their practices, there will be duties”.
Both Chinese corporations hold up to 25% of the European telecommunications market. China is accused to dumping its materials into Europe, something that Europe is not supporting.
Why is it a problem? Over-reliance on Chinese products threatens European security in addition to European companies.