The EU has stalled a trade case against Chinese telecommunications companies, defusing a row with Beijing on the eve of a summit with Wen Jiabao, the country’s premier.

Karel De Gucht, the EU trade commissioner, said the anti-subsidy case 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, nor to stronger pressure from Beijing – as well as from some EU member states, worried about Chinese retaliation – to drop the case.

However, it comes just weeks after EU-China trade relations were buffeted by the commission’s decision to launch an investigation into Chinese solar panel manufacturers.

– (The Financial Times Ltd)