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EU Tells China to Slow Telecom-Gear Exports or Face Duty Threat

The European Union warned China of possible tariffs on mobile-telecommunications equipment unless the government in Beijing curbs exports, the latest EU salvo against Chinese threats to manufacturers in Europe.

The European Commission said it was prepared to probe possible Chinese subsidies to telecom-network makers such as Huawei Technologies Co. and ZTE Corp. and the possible sale of the equipment in the EU below cost, a practice known as dumping. The inquiries would cover EU imports of more than 1 billion euros ($1.3 billion) a year and determine whether these shipments unfairly harmed European producers such as Ericsson AB.