Huawei Technologies Co Ltd, China's biggest telecommunication equipment company, has denied receiving government subsidies and has warned the European Union against being judgmental of Chinese companies.

The EU said this week it may investigate claims that Huawei and rival Chinese telecom company ZTE Corp had been paid unfair subsidies, allowing them to flood markets with cheap equipment.

But Huawei's top executive in Western Europe told China Daily the company will take strong action if the EU starts an investigation.

Tao Jingwen, the president of Hawei Technologies Co Ltd West Europe Region, also said that the EU should work to improve its dialogue and communication with the industry, rather than simply decide to go down the route of imposing sanctions against companies.

Karel De Gucht, the European commissioner for trade, said earlier the EU may start to levy trade duties on the Chinese telecommunications equipment providers.

Huawei has denied receiving unfair subsidies from the government, and insisted that its price advantages come from its technology innovation.

"We hope the EU listens to our customers. Our low prices alone cannot win market share. It is only quality products and services which conform with the laws and regulations that are acceptable to our clients," said Tao.

Huawei entered the European market a decade ago, and since 2011 Europe has been its largest market outside of China.

It earned $400 million from the region in 2011, about 13 percent of its total global revenue.

Some reports have suggested that Huawei has a significant market share in Europe, but Tao said it has just 7 percent, "which isn't very big".