After the border dispute, India’s action on Chinese companies is still under surveillance. Now the government is preparing to clamp down on China’s technology company Huawei and ZTE. The government has prepared to remove Huawei and ZTE from the 5G trial. The government may soon announce a ban on both companies. After the border dispute, India-China relations are going through the worst phase in four decades.
Center changed the rules for foreign investment on 23 July
The central government changed the rules related to foreign investment on 23 July given national security. According to the new rules, countries with which India’s border is shared by land, those countries will have to get the necessary approval before investing. According to the sources aware of this matter, now the countries of South Asia will have to get the necessary approval before the new rules are invested in India. According to sources, the telecom ministry will soon start the process for approving pending applications of private companies for 5G trials. Bharti Airtel, Reliance Jio Infocomm and Vodafone-Idea have applied for 5G trials. But it is delayed due to the nationwide lockdown.
5G auction may be postponed for next year
The United States, Britain and Australia have closed the doors of 5G trials for Chinese companies linked to the Chinese government. India is also going to take steps in this direction. The Federal Communications Commission has declared Huawei and ZTE a threat to national security. According to an official, the 5G auction process could be postponed to next year. Sources say that the ban on these two Chinese companies can be announced in 1 or two weeks after the approval from the Prime Minister’s Office.
India-China relations snapped after 20 soldiers killed
In June this year, there was a dispute between the forces of India and China on the border in the Galvan Valley of Ladakh. 20 soldiers of India were killed in this dispute. At the same time, the matter of the death of some soldiers in China was also revealed. Since then, the relationship between India and China has been strong. However, India earlier this year approved Huawei to participate in the 5G trial. But after the border dispute, India is constantly taking action on Chinese companies.
Telecom Infra part of National Security Asset: Nikhil Batra
International Data Corporation (IDC) analyst Nikhil Batra says that telecom infrastructure is part of the national security assets of any country. Every country wants to control and regulate it like electricity and water. But the Indian telecom market is already grappling with infrastructure and regulatory problems. India’s network equipment market is quite small. In such a situation, the decision to ban Huawei and ZTE could increase India’s challenges further.
$ 4 billion investment estimate on 5G setup
IDC estimates that telecom companies will have to invest $ 4 billion in the setup of 5G infrastructure. This can be difficult for Indian companies as Bharti Airtel, Vodafone Group and state-run telecom companies are struggling to make 4G networks profitable. These companies rely on Chinese equipment for the first 4G network. According to Rajiv Sharma, Head of Research, SBICAP Securities Limited, closing the doors for Huawei and ZTE could increase the cost of switching to 5G by 35%.
Reliance can become a challenge for Huawei
The second-largest wireless market in the world could pose a major challenge for domestic company Reliance Huawei in India. The reason for this is that Mukesh Ambani has announced at the company’s AGM on July 15 that Jio Infocomm is ready for the 5G network rollout. Mukesh Ambani had said that Jio has developed the entire technology of 5G in-house. Reliance group says that they will not have to spend much like opponents to switch to the new system.
India banned 106 apps of China including Tiktok
After the border dispute in the Galvan Valley of Ladakh, the Indian government had banned 59 apps of Chinese companies. This included popular apps such as TicketLock, WeChat, UC Browser of Alibaba Group and UC News. After this, the government had banned 47 apps in China in July last month. It had clones of most previously banned apps. Thus far the Indian government has banned 106 apps from China. Ticketcock’s Indian business is valued at around $ 3 billion.