Wednesday, June 2, 2010

Chinese Business Association says India's security concerns over Telecom equipment is baseless

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One of China's major Business Association has stated that India's security concerns over Chinese Telecommunication equipment are totally baseless. According to the association, Chinese companies use the same technologies which are used in western countries. Thus, restricting only Chinese players in Indian telecom space is discriminatory and driven by prejudice.

Association of China's machinery and electronic products exporting companies, Chamber of Commerce for Import and Export of Machinery and Electronic Products (CCCME) has said to Indian government that the talks should be continued to resolve the issue. According to the chamber, with this step interests, of Indian industry and consumers will also get affected.

Jang Yujing (President of Chamber) said to 'China Daily' that no party will get any benefit from the currently ongoing dispute related to the usage of Chinese telecom tools in India. He said that it's a discriminatory policy by which not only the interests of Chinese exporters will be affected but it will also affect Indian businessmen and consumers in a negative manner.

Jang added that the security concerns of India are baseless as we also use the same technology that is used by Western companies.

Chamber said that in the past 5 years, Indian telecom operators have largely used equipment with 'Made in China' tag but not a single complaint related to India's security had risen. This step by Indian authorities can prove to be very costly for Indian operators who have already spent large amounts to buy 3G spectrum.

If Indian operators won't get permission of purchasing telecom equipment from Chinese companies then they will have to seek these tools from Western companies whose equipment are quite costly. In that condition, they will put this additional burden on the customers.

It is considered that Chinese Telecom equipments are 20% cheaper than other western companies. This is the second time when Chinese official media has reported about business related concerns of industry. It has been said in reports that import from Chinese is banned in India. However, Indian officials have denied the reports of any type of restriction on Chinese equipment.

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