India Tightens Grip on Chinese Telecom Firms Over Security Concerns
The Indian government continues to enforce strict restrictions on Chinese telecom equipment manufacturers such as ZTE and Huawei, citing serious security concerns. Despite recent efforts by ZTE, including a proposal to partner with Celkon Resolute to manufacture routers in Andhra Pradesh, the government’s stance remains firm. The restrictions are rooted in the National Security Directive, which bars the use of equipment from ‘non-trusted sources’ in India’s telecom networks. This policy effectively prevents these companies from participating in the 5G rollout and limits their involvement in existing networks.
National Security Directive: The Trusted Sources Policy
At the heart of this issue is the ‘trusted sources’ policy, enforced by the National Cyber Security Coordinator (NCSC). This directive requires stringent compliance from telecom equipment providers, including detailed disclosures about their operations and products. ZTE and Huawei have yet to meet these rigorous requirements, resulting in their continued exclusion from India’s telecom projects.
The Department of Telecommunications (DoT) has also mandated that operators assess and report the use of non-trusted equipment within their networks. This additional layer of scrutiny further diminishes the prospects for ZTE and Huawei in the Indian market.
Manufacturing in India: Limited Scope for Chinese Firms
While ZTE has the ability to manufacture consumer Wi-Fi equipment in India, these products can only be utilized in telecom networks with explicit approval from the NCSC. The proposed ZTE-Celkon partnership has faced significant delays due to the lack of progress and clarity from the government.
Geopolitical Tensions and Cybersecurity Concerns
Although there have been some recent relaxations for Chinese companies in other sectors, the telecom equipment industry remains heavily regulated. With ongoing geopolitical tensions and unresolved cybersecurity concerns, the chances of relief for ZTE and Huawei in India’s telecom sector remain slim.
