The EU has stalled a controversial trade case against Chinese telecommunications companies, defusing a row with Beijing on the eve of Wen Jiabao, the country’s premier’s last summit with European leaders.
Karel De Gucht, the EU trade commissioner, has told officials the anti-subsidy case, which was seen as proof of a more assertive stance to China, needed stronger evidence before it could proceed, according to people briefed on the meeting.
Commission staff insist the move is not tied to Mr Wen’s visit today, or to stronger pressure from Beijing – as well as from some EU member states, worried about Chinese retaliation – to drop the case.
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