Infinera says China subsidizes rivals Huawei, ZTE

US telecommunications equipment maker Infinera charged that its Chinese rivals Huawei and ZTE Corp receive unfair government support and called for a tough U.S. response on both economic and security grounds.

"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. "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.