When Samsung Electronics Co.’s early-September Galaxy Gear launch created a hype around the potential market for smartwatches, it was certain that we would soon see cheaper versions from Chinese competitors.
The European Union’s trade chief will ask for backing this week from senior members of the bloc’s executive arm to start investigations into alleged unfair trade practices by Chinese network-equipment suppliers Huawei Technologies Co. and ZTE Corp., an EU official said, amid concern from European companies that such a probe could prompt a backlash against their interests in China.
The U.S. government is seeking oversight of network-equipment purchases as a condition for approving Softbank Corp.’s $20 billion acquisition of U.S. phone carrier Sprint Nextel Corp., a move that appears to be aimed at keeping out Chinese suppliers like Huawei Technologies Co., people familiar with the matter said.
China’s ZTE Corp. plans to ramp up competition in the crowded U.S. smartphone market with higher-end gadgets and closer ties with carriers, aiming to become one of the world’s top three smartphone brands.
An internal European Union analysis has found that two Chinese makers of wireless network equipment, Huawei Technologies Co. and ZTE Corp., are dumping products onto the European market at rock-bottom prices, inflicting grave damage on European producers.
ZTE Corp.’s shares tumbled 15 percent Monday after the company forecast a net loss for the third quarter, and analysts said that the already-tough business climate could get even harsher for the Chinese telecommunications equipment maker.
China issued its strongest statement yet against a U.S. congressional report urging U.S. business to spurn two Chinese telecommunications companies, saying the move could hurt relations between the countries.
Chinese telecommunications equipment maker ZTE Corp. plans to launch smartphones using a mobile operating system it developed with Mozilla, the U.S. software company behind the Firefox web browser, in the first quarter of next year.