India Bans Chinese Telecom Equipments, China Seeks Clarity

Citing national security reasons, Government of India has banned telecom equipment from China. Recently, department of telecommunications (DoT) issued a note asking telecom operators not to import any Chinese mobile networking hardware into the country. The ban comes over fears that the Chinese equipment may have been embedded with spying-software that could give China’s intelligence agencies an access to monitor telecom conversations in India. The government has also asked operators to cancel all their import orders they had placed with the Chinese vendors. Already becoming a diplomatic issue between India and China, this move has hit top telecom equipment vendors like ZTE and Huawei who are already witnessing a double digit growth in the booming Indian market. The Chinese Embassy has infact written a letter to the Indian Prime Minister seeking clarification on this ban. In response to this, Huawei Technologies said that it is seeking clarification from the Indian government and willing to help solve their concerns; while going one step ahead ZTE has announced to set up a manufacturing plant in India and go for listing on the Indian stock market to fulfill all the security norms “by becoming an Indian company.” However, the Indian government has denied the move to be any country-specific and said “this telecom policy should not hurt Indo-China relations.”

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