The European Union is preparing to launch a massive trade case against Huawei Technologies Co. Ltd. and ZTE Corporation. The EU has gathered evidenced for an anti-dumping case against both companies and said that the two companies have obtained illegal government subsidies. The two companies also sold products in the EU at below cost. Huawei and ZTE could be subject to punitive EU tariffs. Huawei and ZTE compete with European telecommunication companies like Ericsson, Alcatel-Lucent, and Siemens-Nokia. China is Europe’s second biggest trading partner after the U.S. EU Trade Commissioner Karel De Gucht has complained in the past that China subsidies “nearly everything,” which makes it hard to compete.