India to block China’s Huawei over security fears

China’s Huawei is likely to get blocked by the Indian government due to security threat. The government is on the process of prohibiting mobile carriers in the country from using telecommunications equipment that are manufactured by China’s Huawei, two government officials said, under the procurement regulations expected to enter into force in June.

New Delhi is wary of awarding new technology industry to Chinese companies, both because of security concerns and because of an urge to get Indian manufacturers to make more telecommunications equipment.

India’s Telecoms Department said on Wednesday that after June 15, carriers can only purchase those types of equipment from government-approved “trusted suppliers” and that New Delhi may also establish a “no procurement” blacklist. Huawei is expected to be on this embargoed list, the two officials who refused to be identified told Reuters.

“We cannot prioritize economic benefits if the investment faces a national security danger,” one of the officials said.

The Telecommunications Department, which did not comment on Huawei on Thursday, has yet to have further information on the preparations for credible outlets or the blacklist for procurement.

However, a third official, who also refused to be identified, told Reuters that ZTE Corp, another Chinese company with a smaller presence in India, could also be omitted.

Huawei and ZTE are under investigation for reportedly installing backdoor bugs to spy on the Chinese government.

Both have refuted the charges, and Huawei has previously told Reuters that he is willing to enter into a “no backdoor” agreement with India to allay security fears.

Huawei and ZTE did not respond immediately to requests for comments.

Two of India’s three major telecommunications carriers, Bharti Airtel and Vodafone Idea, are using Huawei’s equipment. Any ban on Huawei gear is expected to increase prices, industry experts claim.

Chinese equipment and network repair contracts are generally cheaper than European competitors such as Ericsson and Nokia, and there is limited supply of such equipment in India.

The Center has started to speed up the acceptance of some of the more than 150 Chinese investment plans worth more than $2 billion that it had stalled since a June standoff between the two neighbors on the contested Himalayan frontier.

“We have begun to approve investment plans also from China, but we will not grant any approvals in sectors such as telecommunications networks and finance,” said a senior government official to Reuters.
The Center has started to speed up the acceptance of some of the more than 150 Chinese investment plans worth more than $2 billion that it had stalled since a June standoff between the two neighbours on the contested Himalayan frontier.

“We have begun to approve investment plans also from China, but we will not grant any approvals in sectors such as telecommunications networks and finance,” said a senior government official to Reuters.

The India-China border conflict, the worst in almost four decades, had crippled even fragile ties, and “reaching confidence will be a long way from here,” one of the sources said.

The Ministry of Technology of India did not respond to a request for comments on the ban on apps.