R Clark, User Rank: Blogger 1/15/2014 | 2:29:44 AM
Re: What goes around, comes around These huge loans for developing countries are kind of a political play, so EU countries are not quite so attractive for China. Also, unlike the African markets they're not building out much bigger greenfield networks.
Western govt don't provide the tens of billions of dollars that the Chinese state banks do. Plus the western banks & governments set some conditions on governance, which the Chinese don't do.
I'm guessing the reason there hasn't been a WTO compalint about this is because a) the US and EU have too many other things on their plate with China b) the vendors fear they would lose China market share.
What goes around, comes around The current issues facing Huawei and ZTE re vendor financing deals are in Africa, but it's hard to imagine there won't also be fallout in other markets (including some in Western Europe) where the availability of cheap credit has been a significant driver in strategic decision-making.
It should be noted also that it's not only China's banks that make such credit lines available.
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