Government Telecom companies ban Chinese equipment, major jolt to companies like Huawei and ZTE

New Delhi: The government is preparing to deliver a telling blow to China on the economic front, following the cowardly Chinese attack in which 20 Indian soldiers were martyred. This begins with the decision taken by the government telecom companies BSNL and MTNL. Henceforth, these companies will not be purchasing any Chinese equipment. There are reports that the tendering process is being amended to ensure that the Chinese companies cannot get the orders. This will be a major hit for companies like Huawei and ZTE. The Indian railway also has cancelled a contract given to a Chinese company, worth ₹471 crores. Moreover, the intelligence agencies have listed 52 Chinese apps posing a threat to national security and have recommended a ban on these apps in India.   

Anger is brewing in the Indian population against China, which was expressed in the demonstrations held in various cities of the country. The demand for a boycott on Chinese products is seen to be gaining momentum. At some places, Chinese products were burnt. Trade organisations also are appealing to boycott Chinese products. Now the government also is preparing to deliver a major economic jolt to China. Following the betrayal in Ladakh, indications are that the government companies will stop the purchase and the use of Chinese equipment and materials. This has begun with BSNL and MTNL.  

The government has ordered telecom companies to stop the use of Chinese equipment and materials, and accordingly, the government telecom companies BSNL and MTNL have implemented the government order. The decision to cancel the tenders floated by both these companies for modernisation of 4G technology has been taken, and it is reported that the tenders will be cancelled soon. It is being said that this can be a major jolt to multinational Chinese companies in the telecom sector like Huawei and ZTE.   

Huawei and ZTE are already being accused, around the globe, of espionage. It is claimed that these companies have direct links with the Chinese military. The government had received complaints that the interests of the Indian telecom companies are being hampered because of them. It is also said that the other companies cannot compete against the cheap Chinese equipment because of the huge discounts offered by China. Even against this background, the decision taken by the government telecom companies becomes significant. It is reported that the government is planning to form a policy to keep the Chinese companies away, after holding discussions with the Indian companies.   

The Indian telecom business is worth billions. Chinese companies hold a 25% share in this market. This ban could result in a loss of billions of rupees for China.  

The Indian Railway has cancelled a contract, worth ₹ 471 crores, awarded to Beijing National Railway Research and Design Institute of Signal and Education Limited for building Kanpur and Deen Dayal Upadhyay Stations. Technical issues and delays by the company have been cited as the reasons for cancellation of the contract.   

Moreover, soon there could be a ban imposed on 52 Chinese apps being used in India. As per intelligence reports, these apps are a threat to national security and have been accused of sending the data abroad. Therefore, the intelligence report suggests that either the apps should be banned or the government should advise the people of the country not to use the apps. These apps include Zoom, TikTok, UC browser, SHAREit, Clean up, WeChat, Vigo Video, Bigo Video. 

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