Huawei denies using Chinese subsidies to grab more business

By Denis Pinchuk

ST PETERSBURG, Russia (Reuters) - Huawei Technologies Co Ltd , the world's No.2 telecom gear maker, has denied using Chinese subsidies to gain global market share after it was accused by U.S. lawmakers and EU officials of unfair competition.

Huawei and cross-town rival ZTE Corp <000063.SZ> <0763.HK> have come under close scrutiny by U.S. lawmakers and the European Commission, which say both are able to use subsidies to bid for contracts at lower prices than Western competitors.

Both companies rose to prominence rapidly over the past few years, clinching contracts with major telecom carriers and sometimes edging out European rivals Ericsson , Alcatel Lucent SA