India for the protection of local industry equipment to be restrictions on China - India, China, equipment, restrictions - Communications Industry

India for the protection of local industry equipment to be restrictions on China - India

, China, equipment, restrictions - Communications Industry

Communications and power equipment market in recent years, Chinese enterprises to expand in India, the fastest in the field, however, certain institutions and businesses currently in India continued to maintain national "security" and industrial interests in the name of the release of the "China threat theory device" requirement introduced restrictions.

Restrictions on Chinese equipment will undoubtedly increase the risk and cost of Chinese enterprises, but this is really beneficial to India's security, business and economic development?

"Threat" is being upgraded

8 28, India Communicate Departmental meeting convened by Indian telecom operators, proposed ban on India's state-owned and private telecom operators to use in the sensitive border areas China Telecom Equipment, because the Indian Ministry of the Interior and the intelligence agencies worried that the communication in China Network equipment May contain spyware or malicious software to be used for outside monitoring and data collection.

7 the end of the Indian Business Association submitted a report to the Ministry of Finance said that because China enjoys the government power plant equipment manufacturers to provide export incentives, so cheap, a severe blow to India's domestic related industries. Reported that India's imports from China in 2008 related to electrical machinery and equipment worth 83 billion U.S. dollars, to restrict the import of Chinese power equipment.

Than before, the India's "security threat" and has escalated the tone. On the one hand, the Indian government will regulate the objects from the state-run telecom operator BSNL extended to the private telecom operators; other hand, the government officially host an operator the General Assembly, so that this issue open.

"Threat" behind the competition in the market

So-called "security" issue, the reporter from some Chinese telecommunications companies understand that from a technical perspective, the equipment required by international and national standards, equipment sold after the carrier is responsible for monitoring. If there are safety hazards, operators a lot of responsibilities.

"The media mostly do not understand the specific technical problem, only help the interpretation of the 'spy story'," an unnamed employee told the reporter that Chinese enterprises.

Huawei Technology Co., Ltd. in India told reporters that India has become the largest overseas market, Huawei, Huawei has over the past three years, double the annual growth in the Indian market. But the Indian government continued to upgrade the security concerns, to the enterprise in the future development in India has brought uncertainty.

Chinese power equipment in India also have similar high-growth story, and most directly face the competition from Indian companies, mainly of heavy electrical manufacturer in India BHEL. Government of India had given to BHEL for policy concessions and monopoly status, but the lack of competition leads to limited production capacity of this state-owned enterprises do not have the price advantage. Some analysts believe that India is India's own policy and corporate limited production capacity, making a five-year plan target of half of new electricity had not been completed.

Restrictions are beneficial to India According to local media reports in India, the government proposed to buy the ban, many Indian private telecom operators do not acknowledge it publicly opposed. A number of Indian private operators told government departments to prohibit the procurement of telecommunications equipment in China will seriously affect the business, because they are almost all with Huawei and ZTE Communications companies have signed a purchase contract.

These operators that the Chinese telecommunications equipment prices compared to Ericsson, Nokia And Siemens and other European products more expensive enterprise. Most of the new operators entering the market value of Chinese equipment for a very competitive cost, and with the purchase contract signed. Even a firm foothold in the market, the incumbent operator in China, the equipment often get "affordable" as a bargaining chip in negotiations with the European manufacturers.

According to reports, India's senior officials have said the telecommunications sector, may modify the proposed mandatory measures for the safety guide, may also reduce the restrictions to be implemented in the border areas of the range. In addition, the Indian telecom sector will discuss next steps with the Ministry of the Interior.

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