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Slideshow China's Huawei, ZTE face EU action on telecom subsidies: FT Tweet Share this Email Print Related News China's WTO suit hits back at U.S. duties Fri, May 25 2012 Huawei seeks EU action against InterDigital patent fees Thu, May 24 2012 Europe thinks the unthinkable on Greece Fri, May 18 2012 EU, ECB working on Greece exit contingency: trade commissioner Fri, May 18 2012 Analysis & Opinion China has strongest hand in Philippine stand-off Essential reading: China forces auditors to restructure; veto threat of Republican defense cuts Related Topics Tech » Media » HONG KONG | Sun May 27, 2012 9:28pm EDT HONG KONG (Reuters) - The European Union is set to launch a major trade case against China's biggest telecom equipment makers, arguing that they have benefited from illegal government subsidies, the Financial Times said. The EU told member states it had been gathering evidence for an anti-dumping case against Huawei Technologies Co Ltd and ZTE Corp, saying that they had obtained illegal government subsidies and sold products in the EU below cost, the newspaper said, quoting unidentified EU officials and executives. Once the EU determined that China was acting illegally, Huawei and ZTE, the world's No.2 and No.5 telecom equipment makers, could be subject to punitive EU tariffs, the FT said. ZTE declined comment, while Huawei had no immediate comment. Huawei and ZTE compete globally in the telecom equipment business with European vendors such as Ericsson, Alcatel-Lucent and Siemens-Nokia. Earlier in May, the EU's Trade Commissioner Karel De Gucht said the EU was planning new trade defenses to counter subsidies and dumping by trading partners, such as China. China is the European Union's second biggest trading partner after the United States and the bloc is China's biggest trade partner, with trade between the two forecast to hit a record high of 500 billion euros ($397 billion) this year. But the relationship is tense. De Gucht has in the past complained that China subsidies "nearly everything", making it hard to compete. (Reporting by Lee Chyen Yee; Editing by Richard Pullin) Tech Media Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. 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