China Threatens India on Banning Huawei 5G

China has warned New Delhi of serious consequences on a possible move not to allow Chinese companies to do business in India and has said that Indian companies may face difficulties in their country too.

It may be recalled that Indian Telecom Minister Ravi Shankar Prasad had said that India is going to test 5G cellular networks in the next few months but did not invite Chinese telecom product makers to participate in this regard.

It should be noted that Huawei, the largest telecom product maker in the world, remains the epicenter of a trade war between China and the United States, was blacklisted where US President Donald Trump’s administration raised concerns about national security in May this year.

The US had advised its allies not to use Huawei’s products and said China could use them to monitor their affairs.

According to sources, Chinese officials at the meeting said that India should not ban Huawei under pressure from Washington otherwise Indian companies engaged in business in China could be banned in return.

Compared to other major economies in China, the share of Indian companies is very short here, but companies like Infosys, TCS, Dr. Reddy’s Laboratories, Reliance Industries and Mahindra & Mahindra continue to produce, health, financial services and more in China.

Huawei’s sanctions could create tensions between India and China, and efforts are being made by both sides to prevent tensions from escalating into long-standing land dispute.

In October this year, Prime Minister Narendra Modi will host Chinese President Shi Jinping at the Hindu city of Varanasi, where both trade affairs smears will discuss a $53 billion trade deficit.