Huawei Hits Back at Dumping Claims

12:00 PM -- Huawei Technologies Co. Ltd. has reacted strongly to a complaint from Belgian wireless modem maker Option NV (Euronext: OPTI; Nasdaq Europe: OPIN) that the Chinese vendor has been indulging in illegal business practices in Europe.

Option has complained to the European Commission, claiming that Huawei is dumping mobile dongles on the European market at very low prices (or even giving them away for free), and asking the EC to investigate whether subsidies Huawei receives in China render its involvement in the European market illegal. (See Will EC Probe Huawei, ZTE?.)

Those are strong claims, and Huawei, not surprisingly, is rejecting them in the strongest possible terms.

"We believe Option’s complaints are wholly inaccurate and reject any accusations of injurious dumping or illegal subsidies," proclaims Huawei in a statement emailed to Light Reading. The statement continues:

Huawei’s success is based on a high level of product innovation and our ability to predict the take off of the 3G market in Europe. We prepared for this potential growth, invented the first USB modem in 2005 and first launched it in the EU in 2006. We absolutely reject accusations of dumped prices, in fact we are making reasonable profits on these products... It is puzzling that Option should file a complaint against Chinese producers, when it has by its own admission moved all its production to China. We question Option’s motives in filing such a complaint. This unprecedented triple investigation is heavily burdensome. Should measures be imposed, they will harm European telecom operators, consumers and the realisation [sic] of the EU’s Digital Agenda... Huawei is dedicated to providing cutting edge technology and innovative products and solutions to our customers and consumers, helping meet the rapid growth in European demand for mobile broadband technologies and contributing value to European telecom industry and society. We are fully committed to cooperating with the European Commission on these investigations and will rebut the unjustified allegations by all legal means.

Game on!

— Ray Le Maistre, International Managing Editor, Light Reading

chengjinzhu 12/5/2012 | 4:22:35 PM
re: Huawei Hits Back at Dumping Claims

It's not rocket science to compute margins on vendor sales - there are well established methods for determining whether a product is being sold for a profit or a loss.

An open accounting analysis should be able to put any disputes to rest.  Somehow I doubt, however, we'll ever see those details without court orders, etc.

Until the numbers are laid out in plain view who can say whether there's dumping or not?

Let's get to the facts.




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