China has criticised a European Commission probe into pricing policies for wireless wide-area network modems. A complaint was made by Belgium modem maker Option, which said its products competed effectively everywhere except Europe because Chinese firms were dumping hardware at absurdly cheap prices. Option said the Commission …
Option has a point
Some of the prices asked for a Huawei modem are in the "does not compute".territory.
There is a number of patents you have to license to have working 2G and 3G kit. I really do not see how you can ship kit at the price asked for it while paying the relevant royalties to the patent pool holders.
That is besides the fact that if this investigation starts to dig in deep there is likely to be a Cisco moment at least with regard to the early Huawei modems. Some of these are more Option-like than Option itself...
The European Union is formed for protectionism surely?
Free market within, trade barriers at the frontier.
Is this a good or bad thing? I don't know.
Anyone would think that there is a double blow recession on the go.
Protectionism is the only way european economy can survive
In this case option is correct.
The problem is that in the long run protectionism is the only way local craftmenship and local economy can survive. Not to mention the environmental damage global centralized manufacturing does. In the end I believe environmental issues alone wil re-boot local economy not just in europe but also in the US and other (former) industrialisted areas.
just my though. Besides by now we should all know how terrific these "cwappy chinese pwoducts" are.
Protectionism is bad -
unless «we» do it. Then we are merely protecting the public from the dumping committed by others....
absurdly cheap prices for modems
Where, where, where...... Oh hang on I get it now, not retail prices.