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India plans to set restrictions on China's communication and power equipment

the communication and power equipment market is the fastest expanding field for Chinese enterprises in India in recent years. However, BASF will also launch the following innovative vehicle utilization: at present, some Indian institutions and businesses continue to release the "China equipment threat theory" in the name of safeguarding national "security" and industrial interests, requiring restrictive measures

imposing restrictions on Chinese equipment will undoubtedly increase the risks and costs of Chinese enterprises. However, is this really conducive to India's security, commercial and economic development

"threat theory" is upgrading

on August 28, the Indian communication department convened a meeting of Indian telecom operators and proposed to prohibit Indian state-owned and private telecom operators from using Chinese telecom equipment in sensitive border areas, because the Indian Ministry of interior and intelligence departments are worried that the communication network equipment made by China may contain spyware or malware for overseas monitoring and data collection

at the end of July, a report submitted by the Indian Chamber of Commerce and industry to the Ministry of Finance said that because China 1. Crystalline power plant equipment manufacturers enjoy export incentives provided by the government, the price is low, which has seriously hit the relevant industries in India. The report said that in 2008, the total value of relevant electrical machinery and equipment imported by India from China was US $8.3 billion, requiring restrictions on the import of Chinese electrical equipment

compared with the past, the tone of "security threat" proposed by India this time has an upward trend. On the one hand, Indian government departments have expanded the regulated objects from state-owned telecom operators bsnl to private telecom operators; On the other hand, the Government Department officially held the operator conference to make this issue public

market competition behind the "threat theory"

as for the so-called "security" problem, some Chinese funded communication enterprises learned that from a technical point of view, equipment production needs to pass international and national standards, and the telecom operators are responsible for supervision after the equipment is sold. If there is a potential safety hazard, the operator is very big

"most of the media didn't understand the specific technical problems, so they helped interpret the 'spy story'," a Chinese enterprise worker who didn't want to be named told that when the plane crashed into the engine on the right when it made a forced landing

Huawei Technology Co., Ltd. in India told that India has become Huawei's largest overseas market, and Huawei's annual growth in the Indian market has doubled in the past three years. However, the Indian government's escalating security concerns have brought uncertainties to the future development of enterprises in India

China's power equipment has a similar high growth story in India, and it is more directly facing the competition of Indian local enterprises, mainly Indian heavy motor manufacturer BHEL. The Indian government previously gave BHEL preferential policies and monopoly status, but the lack of competition led to the limited production capacity of this state-owned enterprise and did not have a price advantage. Some analysts in India believe that it is India's own policies and limited production capacity of enterprises that have failed to achieve half of the new power target of the last five-year plan

whether the restrictions are beneficial to India

according to local media reports in India, many Indian private telecom operators do not buy the government's proposed purchase ban and publicly oppose it. Some Indian private operators told the government that banning the purchase of Chinese telecom equipment would have a serious impact on business operations, because almost all of them signed purchase contracts with Huawei and ZTE

the company's deeds are growing steadily. These operators point out that the price of communication equipment in China is cheaper than that of products from European enterprises such as Ericsson, Nokia and Siemens. Most operators entering the market have signed purchase contracts with Chinese equipment because they value the highly competitive cost performance. Even established operators who have a firm foothold in the market often use the "high quality and low price" of Chinese equipment as a bargaining chip in negotiations with European manufacturers

it is reported that senior officials of the Indian telecommunications sector have said that the proposed mandatory measures may be revised into security guidance, and the scope of the border areas where the restrictive measures are proposed to be implemented may also be reduced. In addition, the Indian telecommunications sector will discuss the next steps with the Ministry of the interior

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