Exclusive: China warns India of 'reverse sanctions' if Huawei is blocked - sources

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Exclusive: China warns India of 'reverse sanctions' if Huawei is blocked - sources
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China has told India not to block its Huawei Technologies [HWT.UL] from doing bu...

NEW DELHI - China has told India not to block its Huawei Technologies [HWT.UL] from doing business in the country, warning there could be consequences for Indian firms operating in China, sources with knowledge of the matter said.

Huawei, the world’s biggest maker of such gear, is at the centre of a geopolitical tug-of-war between China and the United States. U.S. President Donald Trump’s administration put the company on a blacklist in May, citing national security concerns. It has asked its allies not to use Huawei equipment, which it says China could exploit for spying.

In response to Reuters’ questions, China’s foreign ministry said Beijing hoped India would make an independent decision on 5G bidders. Indian companies have a far smaller presence in China than other major economies. But firms including Infosys, TCS, Dr Reddy’s Laboratories Reliance Industries and Mahindra & Mahindra have a foothold there in manufacturing, healthcare, financial services and outsourcing.

The main right-wing group tied to Modi’s ruling alliance, which has a long-standing distrust of China and promotes self- reliance in the economy, has stepped up criticism of Huawei. A high-level group of officials, led by the Principal Scientific Advisor to the Indian government Dr. K Vijay Raghavan and including representatives from the departments of telecoms, information technology and the intelligence services, has been looking into whether to open the 5G trials to Huawei.

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