CCTV Transcripts

CCTV Script 17/10/19

— This is the script of CNBC's news report for China's CCTV on October 17, 2019, Thursday.

It is not surprising that the EU commission took this unusual action to some extent as in June this year, EU had said it may take this kind of "temporary measure" to Broadcom based on the antitrust investigation's result.

Broadcom's business practices restrict the entry of other enterprises into the market and cause serious and irreparable damage to competition, according to a preliminary investigation into Broadcom, EU commission pointed out in the latest statement. Under the "temporary measure", Broadcom is asked to stop its exclusive business with 6 major clients who are TV and modem producers, EU commission believes that this kind of products is highly related to people's daily life, but Broadcom's contract includes exclusive terms that means its clients can only or almost only purchase chips from Broadcom. This "temporary measure" will last for 3 years and Broadcom must execute it within 30 days. Broadcom said it will appeal this measure. Margrethe Vestager, European Commissioner for Competition, told media Wednesday that this measure is special and EU commission will take similar actions more frequently. Several big American tech companies, including Google, have already been hit with hefty fines as the European Union conducts increasingly frequent antitrust investigations against American tech companies.

This has had a negative impact on trade relations between the United States and the European Union, Trump also said they will take tit-for-tat actions. The commission's move is now in the spotlight at a time when the US is poised to impose new tariffs on the EU. Based on the arbitration on the issue of aircraft subsidies, on Monday, the world trade organization formally approved US retaliatory tariffs on $7.5 billion worth of EU imports . The European Union and several potentially affected countries have expressed strong concerns and opposition, and the two sides are still in final talks on the issue.

The potential new tariffs have put pressure on a number of European countries, and negotiations are difficult, sources told CNBC.

Makis Voridis

Greek Agriculture Minister

I think we are entering a very bitter discussion... when you have small farmers being influenced and suffering from this kind of taxes then we would expect a similar response from EU

As one of the major affected countries, during a visit to the United States, Italian President Antonio Mattarella was urging trump to avoid the decision, but at a joint news conference with Mattarella on Wednesday, Trump said the tariffs would solve trade problems immediately.

DONALD TRUMP

I could solve the problem instantly but it would be too harsh. It would involve tariffs on European products coming into this country and for right now we're going to try to do it without that, but that would solve the problem instantly because the United States is not being treated fairly.

Markets put close eyes on whether the U.S. will launch its new tariffs plan now.