Huawei and ZTE which are under scanner for security reasons the world over have been charged on Thursday by a U.S. telecommunications equipment company for unfair government support. The company called for a tough U.S. response on both economic and security grounds, reports Reuters.
"China's intentions are clear. They've announced their intention to intensify government support for the optical networking industry and to make their national champions world market leaders," said Michael McCarthy, chief legal and administrative officer for Infinera Corp.
"Our response must be equally clear to ensure the competition in this vital sector is not based on which government is willing to lavish the most aid to their producers, but rather on the quality of the products and the strength of the innovation," McCarthy said in testimony before the U.S.-China Economic and Security Review Commission.
Huawei Technologies Co Ltd is the world's second-largest maker of telecommunications equipment after Sweden's Ericsson. ZTE is the fifth rank provider. Both are facing increasing Western government resistance as they expand market share.
Meanwhile, U.S. lawmakers are pressing two top Chinese technology companies to disclose their inner workings in a probe into security threats to U.S. telecommunications.
Closely held Huawei Technologies Co Ltd and ZTE Corp were asked Tuesday by letter to document, among other things, their interactions with the Chinese Communist Party and advice given to them by five consultancies, including International Business Machines Corp, Accenture and PricewaterhouseCoopers (PwC). ZTE also was asked about its business in Iran, according to Wall Street Journal.
Recently the Chinese telcom giants have been banned from participating in bids for state contracts in Algeria for two years, according to reports.
They have also been fined been fined DZD3 million (US$38,400 each by a local court after being found guilty of bribing executives at the state owned telecoms network, Algerie Telecom.
Last month they came under European Union (E) scanner for benefiting from illegal government subsidies, according Financial Times. EU officials and executives said that the member states have been informed that it is colleting evidence for an anti-dumping case against these companies.
In March this year Huawei was excluded from bidding in the 36 billion Australian dollar (US$37.6 billion) National Broadband Network over reported concerns about cyberattacks from China.