(Telecompaper) The European Commission has agreed to a request from trade commissioner Karel de Gucht to start an investigation into alleged price dumping and illegal subsidies by the Chinese government for its makers of mobile network equipment. In a statement, De Gucht said the investigation would not start immediately, in order to give time for negotiating an "amicable solution" with the Chinese authorities. According to recent media reports on the issue, Chinese manufacturers such as ZTE and Huawei are suspected of receiving beneficial financing from Chinese state banks, allowing them to absorb losses from price-cutting on the European market. Rivals based in Europe, such as market leader Ericsson, have cautioned the EU against starting a trade war, amid fears this could impact the sector's growing business at Chinese mobile operators. According to the EC, imports of Chinese mobile network equipment are worth just over EUR 1 billion a year in the EU. The investigation was launched on the EC's initiative, without receiving any complaints from industry players.