EU Commission may investigate Chinese Telco companies, Nokia-Siemens, Ericsson worried

Financial Times writes according to its sources in Brussels that the EU Commission appears ready to launch a major trade case against China concerning telecommunications equipment companies. Last year EU decided to drop such a probe despite claiming that the companies had received said subsidies in the billions when the claimant demanding the investigation withdrew its claims. This time the commission appears ready to go at it alone.

Nordic companies in the sector are Ericsson (OMX: ERIC B, NASDAQ: ERIC) and Nokia-Siemens Networks, a subsidiary of Nokia Oyj (OMX: NOK1V, NYSE: NOK) and Siemens. Both are undoubtedly worried that any action would lead to an unreasonable backlash at them by the Chinese authorities, which appears to be their normal operating model. Both do plenty of business with the Chinese. It would seem more and more countries are starting to blame each other or foreigners from all perceived ills, escalating worries of more and more protectionism or even an all out trade-war, which in turn would hurt everyone.