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Early media reports suggested that the EU would only drop its investigation if China made some concessions such as limiting the quota for export credits and setting up a monitoring mechanism on companies' market share in China and the EU.

However, no details over what actual terms the two sides agreed upon to allow the case to be settled were provided.

The EU Commission believed -Chinese companies' rapid rise in the European telecom equipment market came from a price advantage as Huawei and ZTE products are as much as 18 percent cheaper than those of European peers, Reuters reported, citing an EU document.

Analysts pointed out that limiting export credit will mean the Chinese exporters of these equipment will face rising costs for financing and fewer channels to secure ample cash supply.

Fu Liang, a Beijing-based independent telecom analyst, told the Global Times that this price advantage won't be hampered even if the policies proposed by the EU are executed.

"A lot of the cost for telecom equipment firms goes to R&D, and the human capital cost of hiring engineers. Chinese engineers earn salaries that are no more than one-fourth of their overseas peers," Fu said Sunday.

This is further secured by the fact that more and more technologies and patents were now developed and owned by Chinese firms, Fu noted.

The monitoring system that was revealed in earlier reports is aimed at better gauging the China market share of European firms like Ericsson and Nokia Siemens Networks, according to media reports.

Experts said in order to succeed in today's highly competitive, globalized economy, companies can rely only on their core competitiveness.

"China has the largest mobile phone user group in the world and, unlike the European market crowded with mobile carriers, has just three telecom operators, so China is a big pie that every industry player values," Fu said.

Although China promises to offer a more open and fair market to European firms, European firms will still have to be able to offer competitive products to succeed in China, Bai said.

The long-term fight will still be focused around core competence, Fu said.

In May 2013, the EU planned to start an anti-dumping and anti-subsidy investigation against Chinese telecom equipment imports but did not launch the probe immediately while continuing its talks with Beijing for a solution.

In March, the EU dropped the anti-dumping investigation against Chinese companies.