Sino-Indian trade relations souring
Saturday, 1 May 2010
From Fazle Rashid
NEW YORK, April 30: Sino-Indian trade ties are becoming sour. In a recent display of hostility India has slapped a ban on the import of telecommunication equipment from Chinese vendors.
The Indian government turned down request by the mobile operators for purchase of Chinese equipment.
The practice has prompted complaints from Beijing and is causing havoc for mobile operators in India, a reputed paper in a report said.
India's ever expanding mobile market has become an important source of revenue for Chinese companies accounting for about 11 percent of 2008 turnover at Huawei Technologies, one of world's leading telecom equipment makers. China's growing trade surplus with India which was about $16 billion last year is causing jitters in the upper reaches of the Indian administration. Indian markets have been flooded with cheaper Chinese products.
New Delhi has slapped a ban fearing Chinese telecom equipment could be embeded in spying devices. India had earlier prevented the use of Chinese equipment in its borders with both Pakistan and China. The mobile operators in India are now required to furnish a list of equipment they import for a more detailed scrutiny. China's second largest network and the fifth largest world-wide with $750 million of its turnover in India is watching the situation, the same paper said.
India is the second largest mobile phone users after China with 584 million users. The price of Chinese telecom equipment is 30 percent lower than other foreign made equipment.
China in the meanwhile is tightening its grip over multilateral lending agencies like the IMF. China has agreed to buy $50 billion worth of bonds issued by the IMF to help the Fund to strengthen its lending capacity. In recognition of China's rising influence Zhu Min ,the Deputy Governor of China's Central Bank has been made special advisor to Managing Director of the IMF. China has more cash than any country or funding agency for any financial rescue.
NEW YORK, April 30: Sino-Indian trade ties are becoming sour. In a recent display of hostility India has slapped a ban on the import of telecommunication equipment from Chinese vendors.
The Indian government turned down request by the mobile operators for purchase of Chinese equipment.
The practice has prompted complaints from Beijing and is causing havoc for mobile operators in India, a reputed paper in a report said.
India's ever expanding mobile market has become an important source of revenue for Chinese companies accounting for about 11 percent of 2008 turnover at Huawei Technologies, one of world's leading telecom equipment makers. China's growing trade surplus with India which was about $16 billion last year is causing jitters in the upper reaches of the Indian administration. Indian markets have been flooded with cheaper Chinese products.
New Delhi has slapped a ban fearing Chinese telecom equipment could be embeded in spying devices. India had earlier prevented the use of Chinese equipment in its borders with both Pakistan and China. The mobile operators in India are now required to furnish a list of equipment they import for a more detailed scrutiny. China's second largest network and the fifth largest world-wide with $750 million of its turnover in India is watching the situation, the same paper said.
India is the second largest mobile phone users after China with 584 million users. The price of Chinese telecom equipment is 30 percent lower than other foreign made equipment.
China in the meanwhile is tightening its grip over multilateral lending agencies like the IMF. China has agreed to buy $50 billion worth of bonds issued by the IMF to help the Fund to strengthen its lending capacity. In recognition of China's rising influence Zhu Min ,the Deputy Governor of China's Central Bank has been made special advisor to Managing Director of the IMF. China has more cash than any country or funding agency for any financial rescue.