India allegedly blacklists Chinese telecom firms

• Source: Global Times
• [01:49 July 09 2010]
• Comments

Covert protectionism

Shi Fenghai, deputy director of the China Information Industry Association (CIIA), told the Global Times Thursday that the Indian government's latest ban is a form of protectionism in the name of safety concerns.

"India is weak in telecom equipment production. Imposing a ban on Chinese products is aimed at protecting its own industry," Shi said, adding that the government fears that Chinese products will deal a crushing blow to their Indian counterparts.

Zheng Wenfu, an associate professor of business administration at the School of Economics and Management at Beijing University of Post and Telecommunications, told the Global Times that it is unwise for the Indian government to impose a ban on Chinese products that are affordable and of good quality.

ZTE India Chairman and Managing Director DK Ghosh said at the India-China Business Forum in Shanghai in June that disallowing Chinese firms to participate in Indian projects would mean no competition and hence high capital and operational costs for operators.

The Indian government's curb on Chinese telecom suppliers has delayed the network rollout plans of many mobile phone companies in India.

All new mobile operators rolling out telecom networks have chosen to partner with Chinese companies, the ET reported

Guo Qiang contributed to this story