Huawei may be barred in India due to national security scare

Huawei was once the leading smartphone brand in China, and it also dominated international markets at some point. However, after it was banned by the U.S. under the Trump administration, alleging it is a threat to national security, the Chinese brand’s sales started to dive.

Now, it seems that Huawei still has a long way to go to get back on track. The company is still fighting to be allowed to return to the U.S., and while this is happening, other countries have been issuing a ban as well.

India to follow suit and bar Huawei?

Reuters reported that India is most likely to block the nation’s telecom service providers from using equipment or devices made by Huawei. It was said that this info came from two Indian government officials who revealed that this is due to the new procurement rules that will take effect in June.

Moreover, it was mentioned that India is thinking twice about doing business not just with Huawei but Chinese companies in general because of security fears. Delhi may just push for Indian manufacturers to produce the telecom equipment needed by the local mobile carriers.

The telecoms agency in India stated earlier this week that after June 15, local mobile carriers would only be allowed to purchase certain types of equipment from “trusted sources,” which means companies that were approved by the government. Delhi was reported to have also made a record of “no procurement” blacklist, and Huawei may be in it as well as ZTE.

"We cannot prioritize economic gains if an investment poses a national security risk," an official said with regards to the possible ban of Chinese companies.

Huawei’s chance to do business in India

Despite the looming ban on Chinese businesses in Delhi, it was said that Huawei is still hoping to make a deal with the country’s technology ministry. For this, Huawei is exploring the tech-sharing agreement for a chance to be in India even when the restriction on Chinese manufacturers looms.

“We are looking for a local partner, and for commercial reasons, we don’t want to disclose any details,” Gizmo China quoted Huawei India CEO David Li as saying. “A tech sharing agreement or joint venture could theoretically allow Huawei to make money off its technology in India despite a ban on sourcing equipment from the company.”