The world’s second-largest telecom industry, India has made amendments to its investment rules to restrain Chinese telecommunication technology firms from getting involved with its 5G infrastructure trials.
The move is most expected to affect China-based Huawei Technologies Co. and ZTE Corp as relations between the two countries hit a four-decade low following deadly border clashes.
India has cited national security concerns to restrict bidders from nations it shares land borders with to keep out the companies.
The country’s Ministry of Communications is expected to pick up the pending discussions on 5G trial approvals with private companies including Bharti Airtel Ltd., Reliance Jio Infocomm Ltd., and Vodafone Idea Ltd. that were delayed by the pandemic induced nationwide lockdown.
Earlier U.S and later the U.K. and Australia had raised concerns about these companies’ Chinese government links. The U.S. Federal Communications Commission (FCC) has officially declared both companies as national security threats.
A decision on the ban is expected to be announced in a week or two after approval from the Indian prime minister’s office while the actual process to an auction of 5G will move to next year.
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