Chinese firms blocked in India
- Source: The Global Times
- [23:32 May 14 2009]
- Comments
Operation creates ‘national security’ concerns
By Hao Zhou
The Indian Intelligence Bureau and the Ministry of Defense have intervened in the interest of national security to prevent the participation of Chinese companies in India, according to Indian media reports.
The two agencies asked BSNL, India’s state-owned and third-largest mobile-phone operator, not to award equipment contracts to Chinese companies Huawei and ZTE in the interests of national security, the Economic Times of India reported yesterday.
BSNL had shortlisted Huawei and Swedish equipment provider Ericsson to build a 93-million-line GSM-3G network, estimated to be worth $6 billion, and which was likely to have been the biggest telecom contract this year, telecomasia.net reported Tuesday.
The Indian government has also set up a committee to examine the issue of the participation of foreign companies, particularly with regard to security-related sensitivities in BSNL tenders.
“India always sees its faster-growing neighbor as a threat,” Fu Xiaoqiang, an expert in South Asia issues at the China Institutes of Contemporary International Relations, told the Global Times.
“As a large power in South Asia, India is too conservative and sensitive to introduce investment from China,” Fu said, referring to India’s ban on Chinese enterprises’ investment in its ports.
Huawei is the only technically qualified bidder for the west and the south zones of BSNL’s massive mobile network, while Ericsson has qualified for the north and east zones.
Although BSNL said Huawei could be awarded the contract in south India since the region does not share sensitive borders with Pakistan, China and Bangladesh and the Indian Department of Telecommunication argued that Huawei was already working with BSNL in south India, the Indian Intelligence Bureau still rejected the bid saying the southern coastline could be considered sensitive in the present security scenario.
“BSNL will give orders to Huawei only after we receive the report from the committee,” Siddharta Behura, secretary of the Department of Telecommunications, told the Hindustan Times.
“We are awaiting clearance from the telecom department,” the Hindustan Times quoted Kuldeep Goyal, chairman and managing director of BSNL, as saying.
Huawei’s Shenzhen headquarters was not available for comment yesterday. But an India-based Huawei spokesperson said, “We have a proven track record of providing secure products and solutions to our customers, and we adhere to stringent customer procurement and product security standards.”
“China and India are both members of the World Trade Organization (WTO). Huawei can submit a complaint to the WTO for an arbitration on the trade barrier imposed by India,” Fu suggested.