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Huawei Technologies Co said on Saturday that it welcomes the decision by the EU to drop its anti-subsidy probe against the Chinese mobile telecommunications network equipment maker.

Huawei always advocates free trade and open competition and believes that a market environment featuring openness and fair competition is the foundation of industrial growth and will ultimately benefit consumers, news portal xinhuanet.com reported, citing the company's statement.

The case was settled as China and the EU reached a consensus over the matter at a trade officials' meeting on Saturday in Brussels co-chaired by Chinese Minister of Commerce Gao Hucheng and the EU Trade Commissioner Karel De Gucht.

China and the EU are important trading partners but as China's manufacturing moves up along the value chain, more Chinese companies are coming into competition with European firms.

Previous trade rows between the two partners have included wine, solar panels and steel.

Bai Ming, a research fellow at the Chinese Academy of International Trade and Economic Cooperation, said the EU's decision should be able to improve relations between the two sides.

"The trade relations between the EU and China will begin to enjoy a peaceful ride for some time, but in the long run there is a high likelihood that other trade disputes will emerge along the way," Bai said Sunday.