EU escalating telecom dispute to harm trade ties(3)

The European Commission said any probes into Chinese telecom products will not be started for the time being in order to allow for negotiations and the creation of an amicable solution.

However, Chinese analysts believe the EU probes will likely take place as the commission resorts to trade protectionism in exchange of more market shares in China for European companies wont work.

Earlier this year, the EU reportedly asked Huawei and ZTE to raise the prices of their exports to Europe by 29 percent and demanded that the Chinese side offer 30 percent of its telecommunications market to European manufacturers in return for dropping investigations into the Chinese companies.

The EU's latest protectionism-for-market decision has even drawn criticism from some member states and European telecom providers themselves, with Britain and the Netherlands, as well as European manufacturer Ericsson, openly opposing the investigations.

Last Tuesday, Ericsson, Huawei and Nokia Siemens Networks signed a memorandum of understanding that includes efforts to make their

operation support system interfaces inter-operable, heralding closer cooperation between the three rivals.

In addition, Huawei has expressed willingness to make Europe its largest market following China, as the United States decided to restrict government purchases of Chinese IT equipment in late March.

In September last year, Huawei unveiled a 2-billion-U.S. dollar investment plan to expand its operations in Britain over the next five years.