The Commission of the European Union (EU) has initiated an investigation into charges that manufacturers in the People’s Republic of China are shipping government subsidized wireless wide area networking (WWAN) modems into the EU, in violation of the EU’s anti-dumping laws.
The Commission’s investigation, which was announced in the September 16th issue of the Official Journal of the European Union, follows a complaint received earlier this year from OPTION NV, an EU-based producer of WWAN modems. In its complaint, OPTION NV alleged that WWAN imports from China have increased overall in absolute terms and in terms of market share, and that the prices being charged for the imported WWAN modems have had a negative impact on overall price levels, thereby putting both the company and its employees at risk.
An initial review of the charges by the Commission reportedly determined that there was sufficient evidence to launch a formal investigation into the dumping complaint. The Commission now has 13 months to thoroughly investigate whether government subsidies are being paid to Chinese WWAN manufacturers, and to determine what further actions are appropriate.
The complaint from OPTION NV has also resulted in the Commission authorizing EU Customs authorities to begin the registration of all WWAN modems imported into the EU from China. According to a Commission Regulation issued in June 2010, the registration process will provide the documentation necessary to impose anti-dumping financial penalties retroactively, should the investigation support that finding.
