India is likely to block its mobile carriers from using telecom equipment made by China’s Huawei, two government officials said, under procurement rules due to come into force in June.
New Delhi is wary about awarding new technology business to Chinese firms both because of security fears and a desire to get Indian manufacturers to produce more telecoms equipment.
Huawei Technologies Co., Ltd. is a Chinese multinational technology company. It designs, develops, and sells telecommunications equipment and consumer electronics. The company was founded in 1987 by Ren Zhengfei, a former Deputy Regimental Chief in the People’s Liberation Army.
India’s telecoms department said on Wednesday that after June 15 carriers can only buy certain types of equipment from government-approved “trusted sources” and said New Delhi could also create a “no procurement” blacklist. Huawei is likely to feature on this embargoed list, the two officials, who declined to be named, told Reuters.
“We cannot prioritise economic gains if an investment poses national security risk,” one of the officials said.
The telecoms department, which did not comment on Thursday about Huawei, is yet to provide further details on the plans for trusted sources or a procurement blacklist.
However, a third official, who also declined to be named, told Reuters that ZTE Corp, another Chinese firm which has a smaller presence in India, could also be excluded.
