In this photo illustration, the Huawei logo and Chinese flag are seen on an Android mobile phone.
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Huawei could be banned from participating in the launch of India’s 5G network, just a few months after it was given the green light to participate in the country’s tests for the technology.
It comes after the Indian government said it would block 59 Chinese apps like TikTok and WeChat, claiming they were a threat to national security.
As part of those discussions, Indian government ministers discussed the country’s 5G implementation plans and whether Chinese telecommunications equipment giants Huawei and ZTE should be involved, according to a report by the Times of India.
India’s Ministry of Electronics and Information Technology, as well as Chinese companies Huawei and ZTE, were not immediately available for comment when CNBC contacted them.
5G refers to the next generation mobile networks that promise super fast download speeds and the ability to support critical infrastructure. India has lagged behind in the deployment of the technology, while other countries such as South Korea and China have made progress.
In December, India said it would allow all sellers to participate in 5G tests with sellers. But the latest report of a possible ban on Chinese companies appears to be a U-turn.
Tensions between India and China have escalated over their disputed border in the western Himalayas, and a clash earlier this month left 20 Indian soldiers dead.
“The China-India dispute …, compounded by economic stress caused by the (coronavirus) pandemic, has probably forced the government to consider adopting a strategy similar to that of the United States to retaliate in a way that it could harm China more. ” “Neil Shah, director of research for Counterpoint Research, told CNBC.
India’s largest mobile network, Reliance Jio, uses Samsung for its oldest 4G network. The other two biggest players, Bharti Airtel and Vodafone Idea, use a mix of providers, including Huawei. All three operators have submitted requests to test 5G with various vendors, including Huawei, Indian publication Financial Express reported this month.
The Huawei team represents one third of the current Bharti Airtel network and 40% of the Vodafone Idea network, according to Counterpoint Research.
It would be a “significant loss” for Huawei and ZTE if the government goes ahead and bans them, Shah said.
The three Indian telecoms companies were not immediately available for comment when CNBC contacted them.
‘The tide is turning’
For about a year and a half, the United States government has been pressing countries to block Huawei from their 5G networks, claiming that Beijing could use its equipment to spy on citizens of foreign nations. Huawei has repeatedly denied that it would allow this to happen.
On June 24, United States Secretary of State Mike Pompeo stated that “the situation is changing against Huawei as citizens around the world are realizing the danger of the surveillance state of the Chinese Communist Party.”
The latest report that India is evaluating whether to ban Huawei and ZTE will likely contribute to Pompeo’s confidence.
Washington’s efforts so far have yielded mixed results. Some countries, such as Australia and Japan, do the same, while others, such as the United Kingdom, allow the Chinese giant to have a limited participation in its 5G launch. But it appears that more countries and mobile phone operators are beginning to reject Huawei, a sign that the U.S. campaign may be working.
Telus and BCE, two of the largest operators in Canada, have chosen Ericsson and Nokia to build their 5G network. The Canadian government has yet to make a decision on whether Huawei will be barred from launching the nation’s 5G.
Britain is also re-evaluating its stance on Huawei. The UK’s National Cyber Security Center (NCSC), which is part of the intelligence agency GCHQ, launched an emergency review of Huawei’s role in May, following new U.S. sanctions against the company.
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