Feeds

Indian gov ponders restrictions on Chinese networking gear

Lovely and cheap, but possibly communist and traitorous

Beginner's guide to SSL certificates

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. ®

Security for virtualized datacentres

More from The Register

next story
It's Big, it's Blue... it's simply FABLESS! IBM's chip-free future
Or why the reversal of globalisation ain't gonna 'appen
'Hmm, why CAN'T I run a water pipe through that rack of media servers?'
Leaving Las Vegas for Armenia kludging and Dubai dune bashing
Facebook slurps 'paste sites' for STOLEN passwords, sprinkles on hash and salt
Zuck's ad empire DOESN'T see details in plain text. Phew!
CAGE MATCH: Microsoft, Dell open co-located bit barns in Oz
Whole new species of XaaS spawning in the antipodes
Microsoft and Dell’s cloud in a box: Instant Azure for the data centre
A less painful way to run Microsoft’s private cloud
AWS pulls desktop-as-a-service from the PC
Support for PCoIP protocol means zero clients can run cloudy desktops
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.