Feeds

Indian gov ponders restrictions on Chinese networking gear

Lovely and cheap, but possibly communist and traitorous

Boost IT visibility and business value

The Indian government is set to become the latest global power to restrict the use of Chinese-built telecoms and internet infrastructure technology, in what could be another blow to the ambitions of Huawei and ZTE as they look to grow abroad.

The country’s telecoms minister, Kapil Sibal, is currently considering the findings of a report submitted by his department which assessed 15 countries according to various trade and strategic factors, the India Express reported.

China apparently scored highly on trade value but was bumped down when it came to a strategic assessment.

The report therefore recommended that imports from China be restricted to hardware such as mobile phones, laptops and USB dongles, while technology in key strategic areas such as telecoms and broadband infrastructure, security and cloud computing be obtained from other countries.

For example, network infrastructure kit is to be sourced from the US, Australia, Japan, Finland and elsewhere, while the US, Russia, Japan and France are to be contacted for satellite and emergency comms gear.

Security, encryption and surveillance technologies, meanwhile, have been earmarked for the US, Israel, Finland, Canada and Japan.

If the plan goes ahead, working groups will apparently be set-up with the relevant countries and organisations.

Shenzhen-based telecoms kit giants ZTE and Huawei are likely to be affected most by any restriction on such imports.

The two have already faced hostility from the US government over national security concerns and are being investigated for several separate issues.

ZTE is being quizzed by the FBI over allegations it illegally sold US-made tech to Iran and then tried to cover it up, while the two are the subject of a Congressional committee investigation into allegations the Chinese government is subsidising the price of kit they sell in America.

In addition, Huawei has been banned from submitting tenders for Australia’s National Broadband Network.

Although strong domestically and expanding abroad, the two could probably do without restrictions in potentially one of the world’s biggest markets for telecoms goods.

Forrester analyst, Katyayan Gupta, told The Reg that the report could have far-reaching consequences if implemented.

"Not only on firms like Huawei and ZTE but also Indian service providers like Airtel and Reliance that bid high to acquire a 3G/4G licence and had planned to procure less-expensive equipment from Chinese vendors as opposed to from European vendors like Ericsson and NSN," he said.

"Huawei and ZTE need to work closely with the Indian government to ensure they can address all areas of concern. These vendors cannot afford losing out on a market like India."

He added that the Chinese government may even get involved to sort out the concerns of the Indian authorities.

India could be a tough sell, however.

Although China this week promised to import more Indian-made goods, there is growing dissatisfaction at the widening $20 billion+ trade gap between the two countries, which many believe is due to unfair restrictions on Indian firms by China.

Huawei and ZTE couldn't immediately be reached for comment. ®

The essential guide to IT transformation

More from The Register

next story
The Return of BSOD: Does ANYONE trust Microsoft patches?
Sysadmins, you're either fighting fires or seen as incompetents now
Microsoft: Azure isn't ready for biz-critical apps … yet
Microsoft will move its own IT to the cloud to avoid $200m server bill
Oracle reveals 32-core, 10 BEEELLION-transistor SPARC M7
New chip scales to 1024 cores, 8192 threads 64 TB RAM, at speeds over 3.6GHz
Docker kicks KVM's butt in IBM tests
Big Blue finds containers are speedy, but may not have much room to improve
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
Gartner's Special Report: Should you believe the hype?
Enough hot air to carry a balloon to the Moon
Flash could be CHEAPER than SAS DISK? Come off it, NetApp
Stats analysis reckons we'll hit that point in just three years
Dell The Man shrieks: 'We've got a Bitcoin order, we've got a Bitcoin order'
$50k of PowerEdge servers? That'll be 85 coins in digi-dosh
prev story

Whitepapers

5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.