The European Union will investigate internet modem imports from Chinese networking giants Huawei and ZTE because Belgian competitor, Option, complained they did not declare the devices.
The Belgian company was the sole producer of the wireless router for the European Union.
According to the Hong Kong Trade Development Council, Option complained because of its "weak performance in recent years", which had been made worse by the Chinese government-subsidised imports entering its traditional markets.
An additional "safeguard investigation, in which the European Commission will determine whether, as a result of unforeseen developments, the product concerned is imported into the EU in such greatly increased quantities and/or on such terms or conditions as to cause or threaten to cause serious injury to producers in the EU, was requested by the Belgian government," the council said.
The Chinese manufacturers had reportedly breached EU importation laws because they failed to register they were recipients of Chinese government subsidies, according to Thursday's edition of the Official Journal of the European Union [PDF].
The Journal did not name the manufacturers.
Option was reported to have provided evidence that the Chinese companies received preferential government loans, tax discounts, and grants.
The EU Journal noted the companies had received subsidies from the city of Huawei's headquarters, Shenzen, as well as Shanghai, Beijing and Xian.