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Home Industry Sectors

China seeks India’s independent judgement on Huawei

Fiinews by Fiinews
June 21, 2019
in Industry Sectors, Investment, Manufacturing, Technology
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Huawei plans US$100m investment in India

 

Huawai India.

China has urged India to make an “independent judgement” about Huawei’s operations in the country without being guided by the US ban on the Chinese telecom products.

It has also asked India to provide an unbiased and non-discriminatory environment for the Chinese businesses, reported Press Trust of India on 20 June 2019.

Huawei has about 4.5% of Indian smartphone market as of recent industry estimates and an R&D centre in Bangalore supporting it operations in the country. In total, the Chinese brands took 66% of Indian smartphone market share in the first quarter of 2019.

Huawei has planned a US$100 million over three years in India. This includes introducing 5G smartphones while India is cautiously evaluating the 5G programme in case of foreign products, including those from China.

China has assured global markets and manufacturing sites, telling its businesses to be the good corporate citizen in places they are operating and doing business.

China has always told Chinese businesses to abide by laws and regulations in the foreign countries that they operate and to do business in accordance with law, Foreign Ministry spokesman Lu Kang told a media briefing in Beijing on 20 June 2019.

The US has banned Huawei over security concerns while Washington has been pressuring other countries to restrict the operations of the Chinese telecom group. “It is all being built up on the current trade wars between China and the US,” a diplomatic source said anonymously.

India, however, is yet to take a call on whether it intends to limit Huawei or even allow the Chinese telecom equipment maker to participate in the upcoming 5G trials, that are scheduled to commence in in the fourth quarter of 2019.

Industry observers said China and India are trying to work together as leading Asian manufacturers and markets for the Asian Century that have taken over economic activities from the West.

India enjoys the status of being a low-cost manufacturing base which is preferred for relocation by American-linked manufacturers moving out of China.

China-made products are very competitive and, at times, seen being sold below cost in the global markets, which upsets the high-cost American products, said the observers.

“The Chinese cut-throat pricing is unhealthy competition,” the observers pointed out. fiinews.com

Tags: Huawei
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