Chinese diplomats have registered their annoyance at what they believe are unreasonable requirements that EU equipment suppliers be granted a 30 per cent share of the Chinese telecoms market, according to a report in the Financial Times. The proposal was allegedly made by EU’s trade commissioner, Karel De Gucht, and would in return see the EU quietly dropping a highly contentious investigation into alleged state subsidies to Chinese companies like Huawei and ZTE.

However, the situation has been soured further by De Gucht insisting that Huawei and ZTE increase the price of their exports by 29 per cent as part of the overall agreement, reports the FT. This war-of-words could reach a new level later this week when senior Chinese officials meet De Gucht in Brussels.

FierceWirelessEurope: Report: EU risks trade war with China after demanding greater telecom share; TelecomTV content partner.