China warns India of ‘reverse sanctions’ if Huawei gets blocked

China has told India not to block Huawei Technologies from doing business in the country, warning that there could be consequences for Indian firms operating in China, sources familiar with the matter said.

India will hold judgments on installing a next-generation 5G cellular network in the coming months, but has not yet called if it would invite Chinese telecom equipment maker to participate, telecommunications minister Ravi Shankar Prasad has said.

Huawei, the world’s largest manufacturer of such equipment, is at the center of a geopolitical war of war between China and the United States. US President Donald Trump‘s administration blacklisted the company in May, citing national security concerns. It has urged its allies not to use Huawei devices, which it says China could use for spying.

Two secret sources for internal discussions in New Delhi said India’s ambassador to Beijing, Vikram Misri, was summoned to the Chinese foreign ministry on July 10 to hear China’s concerns about the US campaign to keep Huawei off infrastructure. mobile 5G worldwide.

During the meeting, Chinese officials said there could be “reverse sanctions” on Indian firms engaged in business in China if India blocks Huawei due to pressure from Washington, one of the sources said, citing a reading of the ambassador’s meeting.

The Indian Foreign Ministry did not respond to a request for comment. China’s foreign ministry also did not respond to a Reuters request for comment on the matter.

TENSIONS PVERR TRADE, TERRITORY

Indian companies have a much smaller presence in China than other major economies. But firms including Infosys, TCS, Dr Reddy’s Reliance Industries Laboratories and Mahindra & Mahindra have a foundation there in manufacturing, healthcare, financial services and outsourcing.

A potential feud over Huawei could revive tensions in wider India-China relations as both sides have made high-level efforts to ensure that their long-running disputes over the territories do not escalate.

In October, Prime Minister Narendra Modi will host Chinese President Xi Jinping in the Hindu holy city of Varanasi, his parliamentary constituency in northern India, where both are expected to tackle trade issues including a $ 53 billion trade deficit in 2018/19 that India is worried about.

The main right-wing group affiliated with Modi’s ruling alliance, which has long distrust of China and promotes self-confidence in the economy, has increased its criticism of Huawei.

In a letter written to Modi last week, Ashwani Mahajan, head of the economic wing of Hindu nationalist Rashtriya Swayamsevak Sangh, said there were concerns about Huawei’s operations in India.

“We as a country are not yet sure of relying on Huawei. Globally, Chinese companies, including Huawei, are facing claims that they are” supporting “projects, and positioning themselves and their creation back home to seek and enabling them to close remotely, if required, ”he wrote.

SAFETY CARE OF ALL ALLOWED

Minister Prasad told parliament that six proposals for 5G technology trials have been received, including Huawei. He did not name the others, but firms such as Ericsson of Sweden’s Nokia of Finland and Samsung Electronics of South Korea are expected to participate.

A group of high-level officials led by the Chief Scientific Adviser of the Indian Government Dr. K Vijay Raghavan and including representatives from the telecom, information technology and intelligence services departments, is looking at whether to open 5G trials for Huawei.

The committee has found no evidence to suggest that Huawei used “back-door” or malware programs to collect data on its current operations in India, the first source and another official at the federal telecommunications ministry said.

The interior ministry, which is responsible for infrastructure security, had not issued any directives to restrict Huawei’s entry, the telecom official said.

“We cannot dismiss them simply because they are Chinese,” the official said.

One possibility that a technical expert on the government‘s National Security Advisory Board has suggested is to ensure that the hardware and software for the proposed fifth generation network are not sourced from Huawei.

The government should get wireless carriers who will use 5G services to use Indian-made software to run gear-powered devices like Huawei, NSAB expert V.Kamakoti said in an internal presentation reviewed by Reuters./Investing.com

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