Huawei and ZTE could face having to pay extra to import their products into the European Union, after regulators said they had gathered solid evidence that China had been subsidising them.
Representatives from the EU's 27 member states were told by officials on Thursday in a closed-door meeting that the European Commission had amassed "very solid evidence" of illegal state subsidies of the companies, the The Financial Times reported on Friday.
The officials were also told the Commission had gathered evidence that indicated the companies had sold products in the EU below cost.
EU state representatives who were in the meeting told the FT a case could be brought against China as soon as next month.
If the case determines China was acting illegally, Huawei, ZTE and other Chinese companies could face extra costs on selling their products in the European Union.