India bans Chinese telecoms imports

[atlantis_cn]

India bans Chinese telecoms imports - CNN.com

The Indian government is blocking purchases of telecoms equipment from Chinese vendors on national security grounds, ratcheting up trade tensions between Asia's fastest-growing large economies.

The practice has prompted complaints from Beijing and is causing havoc for mobile operators in India, which need enormous amounts of equipment to sustain an industry that is adding 20m new users a month.

"Proposals for procurement of equipment from Chinese original equipment manufacturing vendors have not been recommended due to security concerns," the Department of Telecommunications wrote this week in correspondence to the prime minister's Office, seen by the Financial Times. "Therefore, the proposals from the service providers for purchase of Chinese equipment is turned down."

India's mobile market has become an important source of revenue for Chinese companies, accounting for about 11 per cent of 2008 turnover at Shenzhen-based Huawei Technologies, one of the world's leading telecoms equipment makers.

But China's growing trade surplus with India -- about $16bn last year -- is leading to tensions, with Indian companies complaining that the market is being flooded with cheaper Chinese goods.

New Delhi has long been accused of blocking the purchase of some Chinese telecoms equipment due to fears Beijing might embed spying devices in its networks.

Previously, this practice was thought to be mostly limited to equipment to be installed in India's disputed border regions with Pakistan and China. But in December, the Department of Telecommunications amended its licence conditions for mobile service providers, requiring them to submit all plans for procurement of telecoms equipment from foreign vendors for screening for "security clearance".

Although the December amendment did not single out China, in practice, security agencies have been blocking applications involving Chinese vendors. Indian department officials were unavailable for comment on Thursday night.

Chinese officials were also unavailable for comment. But the correspondence seen by the FT mentioned a request from the Chinese embassy in New Delhi for information on the amendment.

ZTE, China's second-largest network equipment maker and the fifth-largest worldwide with $750m of turnover in India, said yesterday that it was still investigating the situation.

"This is apparently not normal commercial behaviour but something related to political factors, and it is not appropriate for us to comment on political issues," said ZTE.

India is the world's second-largest mobile market after China with 584m subscribers.

 

[gpit]

...
But China's growing trade surplus with India -- about $16bn last year -- is leading to tensions, with Indian companies complaining that the market is being flooded with cheaper Chinese goods.
...

As is well recognized even among Indians that one of many reasons that India is behind China is that India did not open up earlier enough.

It is obvious that interest groups in India do not to open up to harm their pathetic products and interest at the expenses of their consummers.

Perhaps true that Chinese goods are cheap. That is precisely why we value the Chinese goods: they keep our inflation low.

If you take that in a derogatory way, then why India can’t even produce cheap products? Doesn't that sound even cheaper?

Simple economics tells us, if products are not welcomed by consumers, the products can’t be flooded in market. N’est pas?

 

[Avatar]

As is well recognized even among Indians that one of many reasons that India is behind China is that India did not open up earlier enough.

It is obvious that interest groups in India do not to open up to harm their pathetic products and interest at the expenses of their consummers.

Perhaps true that Chinese goods are cheap. That is precisely why we value the Chinese goods: they keep our inflation low.

If you take that in a derogatory way, then why India can’t even produce cheap products? Doesn't that sound even cheaper?

Simple economics tells us, if products are not welcomed by consumers, the products can’t be flooded in market. N’est pas?

You either ejected your brain somewhere or simply lack the ability to think rationally.

With 500 million people below age 25, India can produce whatever it wants to, at whatever price it wants to.

A quick marketing lesson. You study the needs of potential customers and come up with a product that's suitable for them. That's how Tata Nano was built. Indian consumers want cheap phones but they also want reliable phones. I have never seen a Chinese phone in India work longer than 3 months. Period.

We can make the same stuff and sell it to our people but that's not what we call progress. That's what we call selfishness

India ALSO makes cheap phones. These phones do not have the same features like Chinese phone but they are very durable and reliable.

Now when I am referring to "Chinese" phones, I am referring to the cheap less than 100$ phones that form majority of the fake phone market (you can call it copied or indigenously designed) ..The branded phones which are manufactured in China are as good and as expensive as any.

 

[Dr.Evil]

If china has problem with India on this trade, they can apporach WTO, that should settle the matter.

What's the big fuss about it.

 

[navtrek]

As is well recognized even among Indians that one of many reasons that India is behind China is that India did not open up earlier enough.

It is obvious that interest groups in India do not to open up to harm their pathetic products and interest at the expenses of their consummers.

Perhaps true that Chinese goods are cheap. That is precisely why we value the Chinese goods: they keep our inflation low.

If you take that in a derogatory way, then why India can’t even produce cheap products? Doesn't that sound even cheaper?

Simple economics tells us, if products are not welcomed by consumers, the products can’t be flooded in market. N’est pas?

Now that there is so much talk of simple economics is guess the laws of simple national security is also known to all LOL

These laws are not against China its only against the misuse of these equipments by terrorists & Naxalites.

 

[navtrek]

Hi guys stop making this a flaming thread Hope the Chinese members understand our security concerns. there should always be a common understanding under which there can be trade o these telecommunication products.

 

[Speeder 2]

With 500 million people below age 25, India can produce whatever it wants to, at whatever price it wants to.

Good to see some statistics you listed here. Could you pls break it down further to tell us how many of these "500 million people below age 25" are able to write their own names? We'll see from there?

...then those who are able to write their names can start trying to figure it out how to crack personal hygiene system, such as toilets, as the first 10 years of 21st century have almost gone...

That's how Tata Nano was built....

Puh..leeeez!

India ALSO makes cheap phones...

$100 "computer"? $1,000 "car" ? ... now we are talking !

 

[gpit]

You either ejected your brain somewhere or simply lack the ability to think rationally.

When your fingers typed this, it seems to reflect that everything above your shoulder is a vacuum.

See further proof below.

With 500 million people below age 25, India can produce whatever it wants to, at whatever price it wants to.

A quick marketing lesson. You study the needs of potential customers and come up with a product that's suitable for them. That's how Tata Nano was built. Indian consumers want cheap phones but they also want reliable phones. I have never seen a Chinese phone in India work longer than 3 months. Period.

We can make the same stuff and sell it to our people but that's not what we call progress. That's what we call selfishness

India ALSO makes cheap phones. These phones do not have the same features like Chinese phone but they are very durable and reliable.

Now when I am referring to "Chinese" phones, I am referring to the cheap less than 100$ phones that form majority of the fake phone market (you can call it copied or indigenously designed) ..The branded phones which are manufactured in China are as good and as expensive as any.

I never deny that Indians are capable of doing anything. But I do have problem with your fictional and fundamentalist description.

1) Don’t think if you believe something, that thing will happen. The world is real, not fictional.

2) 500 million people below age 25 can mean nothing if they are illiterate or malnutrition. On the contrary, they could be detrimental to your greatest aspiration such as “in 5 years world will only remember Bombay, forgets Shanghai”.

3) Youngsters do have advantage in terms of physical health and strength, but they are also petulant and peevish like you, and are less skilled than more matured people. They are not stable in that they create plans after plans and not many may be able to persist the execution. Otherwise, the whole world would have talked about Bombay and forgotten about Shanghai for years.

4) “whatever it wants to, at whatever price” is an anti-economics extremist statement. Nobody so far can produce whatever he/she wants to, much less at whatever price he/she wants to. That is an outright fiction. We are not Shivas, we are human beings with limited resources. If you could, would you rather pay Russian 2.33 billion for the stupid Gorshkov? So, being sane is very important. Actually being sane is the first and foremost thing before you attempt to produce any thing. If you are insane, nothing can be produced but BS.

I have to agree that some Chinese products do have low quality. Nonetheless, a simple economic law is that if bad name flies, no one wants to buy it. How could be that the products are still flooding the market? The mere fact that Chinese products flood the market itself demonstrates that they are overwhelmingly welcomed by ordinary people, probably due to high value/price ratio?

Go back to cell phone. In America, on average, people change phone in about every 4-6 months because they want to follow the fashion and fanciness. They don’t care if a phone can last 100 years – nobody wants a grandma’s phone, probably not you, either. Do you think this is probably the reason why we don’t see Indian phone but a lot of Chinese/Korean phones? Do you think the Chinese have actually outperformed you again in this aspect?

 

[ao333]

You either ejected your brain somewhere or simply lack the ability to think rationally.

With 500 million people below age 25, India can produce whatever it wants to, at whatever price it wants to.

No, those 500 million people need brains to produce whatever they want. And no, I don't think anything made by Tata Nano would sell for anything above 1000 USD, that is, if they can one day pass our road safty tests...

A quick marketing lesson. You study the needs of potential customers and come up with a product that's suitable for them. That's how Tata Nano was built. Indian consumers want cheap phones but they also want reliable phones. I have never seen a Chinese phone in India work longer than 3 months. Period.

Evidently, Indian consumer studies have failed to satisfy its customers' needs, as Chinese phones are at high demand in India. You have never seen Chinese phones work in India for longer than 3 months? They must've been Indian counterfeits of Chinese cell phones, because my Blackberry which consists of 80% Chinese components has worked smoothly for over 3 years.

We can make the same stuff and sell it to our people but that's not what we call progress. That's what we call selfishness

Actually, if you took economics, like I have, you'd know that trading deficits are caused by over-demands from one party. In the US' case, China has filed in numerous requests for sale permits of high-tech civilian products to China, in a sincere attempt to fill the gap, but was denied in most cases. If the United States allowed such, then the trading deficit would be filled.

However it's different for India. Indians need Chinese goods, because they can't make it themselves, in spite of MUCH lower labor costs. Why? Because, 500 million 88 IQ brains don't equate to anything but trash.

India ALSO makes cheap phones. These phones do not have the same features like Chinese phone but they are very durable and reliable.

Can their signals reach 10 meters?

 

[James007]

i have seen chinese phones ,even the shop keepers says it is not guaranteed that it will work when u take it 2 ur home.only thing is they are of very less price and even sometimes i hear abt the blast in the phones,damaging the life of owners.anyway govt is waking up,import watever u want to import but atleast it shud complete the demands of customer.

 

[grey boy 2]

Whats the big fuss regarding this peanut so-called telecoms ban ?

Wake up Indians !!

China becomes world's biggest exporter
http://www.guardian.co.uk/business/2010/jan/10/china-tops-germany-exports

 

[below_freezing]

i have seen chinese phones ,even the shop keepers says it is not guaranteed that it will work when u take it 2 ur home.only thing is they are of very less price and even sometimes i hear abt the blast in the phones,damaging the life of owners.anyway govt is waking up,import watever u want to import but atleast it shud complete the demands of customer.

nope they must be fake indian counterfeits of chinese phones. my phone is from 2004, and it is still operational. it's cheap and can't do much (like when i originally bought it) but it still can make calls.

contrast to indian inventions:

nano - like driving a coffin
electrical plants - turning on the light is like going to casino

 

[James007]

nope they must be fake indian counterfeits of chinese phones. my phone is from 2004, and it is still operational. it's cheap and can't do much (like when i originally bought it) but it still can make calls.

contrast to indian inventions:

nano - like driving a coffin
electrical plants - turning on the light is like going to casino

it's ur wish to decide if u don't want then it's not my headache.i don't say chinese goods are cheap and risky,although if u want higher quality then u can also get.the only thing is that u can get anything at any cost.
poor people dont understand,they just look 4 money .
regarding to nano,in our colony i live ,there are more than 10 nano's are used.i never heard abt any complaint abt that car.
now coming to reality .the reason is u just look those things which u want to look.u dont look at the others using nano car.don't look at ur hatred phase.live in present and at the present minute.
have a very gud morning

 

[tomluter]

We had imported telecoms equipments form western for many years. There arent any national security events happened so far, Chinese gov also do not trust western. But business is business, It is dubitable that the Indian economic open policy, could it be said that Indian inferior to a communism country?

Compared with complicated telecoms equipments, cell phone is a simple appliance. Most very cheap cell that come form China, are produced illegally in some chinese underground factories. But it dosen mean that any Made in China are very inferior and very cheap thing. Most of Iphone are made in China.

Nano, I dont think Chinese consumers is so poor that have to give up the safety performance and some basic function of a car. And in China,the price of a car is not the most importand, but the cost in use. So Nano is wholly unsuited to conditions in China.

 

[jagjitnatt]

http://www.defence.pk/forums/world-affairs/56341-india-bans-chinese-telecom-equipment.html

There is already another thread discussing the same. MODS please merge.


That thread seems to describe exactly why the equipment got banned.

Its nothing to do with China. Its that the equipment does not comply with the international laws and comes without IMEI or fake IMEI numbers that makes them impossible to track and their misuse is growing.