Chinese Telecom Equipment Now Banned In India

[Yusuf]

While Indian domestic companies can't even compete with Chinese companies, you expect them to compete with Nokia, Ericsson?

Huawei and ZTE are late players in the Indian markets, before Chinese players entered Indian markets, where is your domestic companies? By barring Chinese companies from competing in Indian market, it will only make western companies have a absolute control over Indian market.

And BTW, don't always use unfounded Chinese massive subsidies as an excuse to justifiy the incompetence of Indian companies. I have never heared that Huawei and ZTE got subsidy from CCP.

In competence of Indian companies? I guess you may be interested in PwC report about Indian companies becoming MNCs. not able to locate the link to that.

 

[nimo_cn]

Right, who will lose in a trade war? You get cheap raw material from India and you make manufactured goods that are exported to India. If India does not buy your goods, you will lose a lot of business. The cascading effect is the worse thing. I would be happy if China does not buy raw materials from India as some self serving people are digging the earth bare over here.

No one is gonna to win a trade war between China and India.

If India really could benefit from a trade war and lose nothing, i believe the Indian government have done that.
They are that dumb, right?

 

[Yusuf]

No one is gonna to win a trade war between China and India.

If India really could benefit from a trade war and lose nothing, i believe the Indian government have done that.
They are that dumb, right?

You cannot have a trade war just like that.There are certain rules to be followed. Last time India banned toys (later revoked) it did have some genuine reasons for it. Tit for tat trade sanctions never work

 

[nimo_cn]

In competence of Indian companies? I guess you may be interested in PwC report about Indian companies becoming MNCs. not able to locate the link to that.

I can imagine what companies the report are going to mention.

Tata, infosys, etc. I have to agree that these companies, if as individuals, are very successful. but India, as a whole, will not be changed by just a handful of MNCs .

 

[Oracle]

I can imagine what companies the report are going to mention.

Tata, infosys, etc. I have to agree that these companies, if as individuals, are very successful. but India, as a whole, will not be changed by just a handful of MNCs .

Only time will tell. Btw, please come back to topic.

 

[badguy2000]

Right, who will lose in a trade war? You get cheap raw material from India and you make manufactured goods that are exported to India. If India does not buy your goods, you will lose a lot of business. The cascading effect is the worse thing. I would be happy if China does not buy raw materials from India as some self serving people are digging the earth bare over here.

well, you should tell it to those indian workers who live on the export to CHina and import from CHina.
the cease of sino-india trade won't affect china's economy, because it is too small to China's 2 trillion+ trade every year.

However, it will have great impact on india.... I think you can figure out how many india live on the sino-india trade...they would lose their job.

 

[ganesh177]

While Indian domestic companies can't even compete with Chinese companies, you expect them to compete with Nokia, Ericsson?

Huawei and ZTE are late players in the Indian markets, before Chinese players entered Indian markets, where is your domestic companies? By barring Chinese companies from competing in Indian market, it will only make western companies have a absolute control over Indian market.

And BTW, don't always use unfounded Chinese massive subsidies as an excuse to justifiy the incompetence of Indian companies. I have never heared that Huawei and ZTE got subsidy from CCP.

Indian companies provide the quality far more superiror than the chinese mobiles at same low price. Just have a look around for spice mobiles, maxx, onida, videocon, and compare it with china made mobiles.
As far as sales are concerned, they are new in market, given the time, they will surely be at par with any branded mobile selling in india.

And about your previous post, i dont agree that a customer should be left with the choice to choose between chinese and other brands. Chinese mobile targets only lower class and you dont expect a lower class indian to be aware of security and safety hazards that these mobiles comes up with. Lower class dont even care for imei number, but it remains a security lapse as it cannot be tracked. So its better govt filters them out at national level. That is one of the job of govt.

 

[Daredevil]

While Indian domestic companies can't even compete with Chinese companies, you expect them to compete with Nokia, Ericsson?

Huawei and ZTE are late players in the Indian markets, before Chinese players entered Indian markets, where is your domestic companies? By barring Chinese companies from competing in Indian market, it will only make western companies have a absolute control over Indian market.

And BTW, don't always use unfounded Chinese massive subsidies as an excuse to justifiy the incompetence of Indian companies. I have never heared that Huawei and ZTE got subsidy from CCP.

China mobiles doesn't compete with high-end mobiles like Nokia, Ericsson or others, it only competes at low-end models with its cut-throat prices due to illegal subsidies and artificially manipulated currency. Indian companies have also now taken plunge into Telecom sector and manufacturing good quality mobiles in both high-end and low-end models (Karbonn mobiles, Spice telecom, Micro mac, Videocon, intex etc). All they need is some time to establish themselves and compete with foreign companies. But problem comes with cheap chinese mobiles which cut down their market. Domestic mobile companies market share has already reached 15% and projected to reach 25-30% in few years. See below report

The domestic mobile handset market, which has been a happy playground for global players like Nokia and Samsung, has begun to see sizeable home-bred presence.
With the government's crackdown on Chinese handsets, Indian brands like Karbonn, Lava, Micromax and Movil have usurped the vacated space and increased their share of the market to 15 per cent, which is projected to rise to 25-30 per cent by the next three-five years.

Most of the home brands are designed in India [ Images ], manufactured in China and at Rs 1,700-6,500 compete with Chinese handsets. Besides, the Indian brands hold the upper hand because they come equipped with the 15-digit International Mobile Equipment Identity (IMEI) number, whose absence was the stick used to beat the Chinese brands.

The IMEI number helps in tracking or blocking a mobile phone. Handsets without this number are perceived as a security risk. The Indian ones also offer more features for the same price, and a wider distribution and after-sales network.

The Indian mobile handset market grew by 23.6 per cent to 122 million in calendar year (CY) 2008, up from 98.7 million in CY 2007, according to Gartner. Nokia is market leader with 58 per cent share, Samsung comes second with 15 per cent.

"These new (Indian) brands emerged after the crackdown on Chinese handsets. They will slowly capture the grey market earlier occupied by Chinese phones," said Indian Cellular Association President Pankaj Mohindroo.

Mahesh Uppal, a telecom expert, said the margins in this industry were not very large. "In smaller towns and cities people are conscious about pricing and still want extra features such as radio, camera and dual SIM. This is why the new brands are picking up so fast."

Karbonn Mobiles, a joint venture between Delhi-based Jaina Group and Bangalore-based UTL Group, introduced its mobile handsets in April this year and have sold 1.5 million handsets till now, Jaina Group Executive Director Shashin Devsare said.

http://business.rediff.com/report/2009/dec/14/tech-more-takers-for-indian-mobile-handsets.htm

Coming to chinese illegal subsidies and currency manipulation which give undue advantage over other competitors, read this

"¢ Illegal Subsidies: China's economic growth plan is based on promoting exports at all cost, and regardless of legality. To accomplish this, the Chinese government provides massive subsidies to many of its industries to allow them to produce goods for export at an artificially lower cost. For instance, the Chinese government holds down the cost of fuel and electricity, which makes the cost of production lower. Also, the government provides free land and utilities to companies in key economic sectors, limits competition by regulating distribution of products, hands out free to low-cost loans to favored companies, and utilizes many other methods of promoting its export industries at the expense of those who play by the rules. (Statement of Dr. Usha C.V. Haley before the U.S.-China Economic and Security Review Commission, April 4, 2006).

"¢ Currency Manipulation: From 1994 until 2005, China explicitly pegged its currency, the yuan, to the dollar, at a rate of roughly 8.28 yuan to the dollar. Since the Chinese economy was growing faster than the U.S. economy during this period, the result is that the yuan was significantly undervalued. This made China's exports to the U.S. relatively cheaper than they should have been and made U.S. exports to China more expensive than they should have been. This had twofold negative effects on American industry. On one hand, the relatively cheap Chinese imports drove domestic manufacturers, who could not compete with that price, out of business. On the other, the relatively expensive imports of U.S. products into China limited consumption of U.S. goods there, putting many export-intensive U.S. companies out of business. Since 2005, China has allowed the yuan to appreciate slowly, although it is still dramatically undervalued. (Congressional Research Service, China's Currency: A Summary of the Economic Issues, July 11, 2007)

http://www.americanmanufacturing.org/issues/china-cheats/how-china-cheats/

Also read this http://news.bbc.co.uk/2/hi/6326213.stm

 

[anoop_mig25]

my one question here how can chinese government provides low cost electricity to their hometown firms?

 

[badguy2000]

my one question here how can chinese government provides low cost electricity to their hometown firms?

guy, it is not CHinese electricity supplied that is lost-costed,but India's electricty is high-costed,get it?

 

[Iamanidiot]

Armand2REP
HJow much do the chinese invest in H&D and R&D imo both i public and private sectors.I heard that they are not that good investors

 

[Agantrope]

I can imagine what companies the report are going to mention.

Tata, infosys, etc. I have to agree that these companies, if as individuals, are very successful. but India, as a whole, will not be changed by just a handful of MNCs .

More than 5 Lakhs of employee are there and strict quality control is present. In future if i became a entrepreneur i ll surely follow the same model present there. I know many of the people who have established their same quality process in the organisation that they have switched. Quality process doesnt happen in a day, it is slow steady and a painful process

 

[Agantrope]

Everyone have forgot a point that quality and reliability are in same set. I can give numerous examples. There was a comparison pulled in with the Nokia and the Chinese companies. Let me give answer to this. My brother bought a Nokia N70 in 2005 and he is still using the same mobile till date (5 years). In 2008 my friend bought got lured towards the touch screen Mokia mobile and that went useless in mere 10 months which costs a 1/4 of N70.

Quality in India:

Have you heard about the Asshok Leyland a Automobile giant in India. They are very well known for their rugged build automobiles and the good quality vehicles. My dad works in there for more than 40 years (still working and next year retirement) and when i got a chance to visit the plant for a training, we saw their quality process. I was bit shocked on seeing, they are followng only 3/4 of the checks that to be performed on the components. Belive but still it have very rugged build and even it is moving well in the EU countries like Italy and Sweden.

A another Car making giant from Korea (name not mentioned ) and my friend worked for a sub-line industry which supplies the spark plug to them. He was quite shocked to quality of the sark plugs that are used there. Another guy was very willing to buy a chinese spark plug and after installing that in 2 days i went bussss.... When went a mechanic he said that "Company X spark plug is very good in quality and cheap then why are going for worst chinese products"

This would have gave a idea about the Quality in India. It is in evolving stage and not like chinese products quality.

I changed 3 Huawei and 2 ZTE modems in 2 year span and im using a same D-Ling wireless router for the same 2 year. Where is the quality and reliability. D-Link is far more reliable than any Chinese products.

Now let me put a single question. Which chinese product go well in quality as well as in reliability? Just give me an answer to this. After that we talk

 

[tarunraju]

Ouch. That could hurt some companies on both sides, as the mobile telecom industry is going to have an overhaul in the next two or so years. GoI is going through auctioning 3G HSDPA spectrum, meaning that each of those 15 telecom companies will have 3G services requiring an overhaul of equipment. The National Internet Backbone is also going to get huge upgrades with fresh fibre-optic and microwave grids along with new internet exchanges and datacenters.

As much as it hurts Chinese companies, it will hurt telecom companies here who will want to buy from China who sell for reasonable prices. If the telecom lobby is hurt bad enough, it could have this ban overturned. Nobody would want to buy from European companies who get high when sending quotations.

 

[badguy2000]

Ouch. That could hurt some companies on both sides, as the mobile telecom industry is going to have an overhaul in the next two or so years. GoI is going through auctioning 3G HSDPA spectrum, meaning that each of those 15 telecom companies will have 3G services requiring an overhaul of equipment. The National Internet Backbone is also going to get huge upgrades with fresh fibre-optic and microwave grids along with new internet exchanges and datacenters.

As much as it hurts Chinese companies, it will hurt telecom companies here who will want to buy from China who sell for reasonable prices. If the telecom lobby is hurt bad enough, it could have this ban overturned. Nobody would want to buy from European companies who get high when sending quotations.

Frankly speaking, I am happy to see such a ban.

Morever, many CHinese netizens appeal that Chinese government should forbid CHinese companies to construct infrastuctures for India,because CHinese companies's invovement can save India lots of money on the construction of infastructures.

as the dicussion started On Chinese companies invovement of India infrastructure construction,

MOD EDIT: Don't bring other forums here

 

[LETHALFORCE]

BG you are mixing two different sectors, Chinese companies are bidding for big infrastructure projects and it has nothing to do with telecom.

 

[Agantrope]

Frankly speaking, I am happy to see such a ban.

Morever, many CHinese netizens appeal that Chinese government should forbid CHinese companies to construct infrastuctures for India,because CHinese companies's invovement can save India lots of money on the construction of infastructures.

lol!!! this actually adds a overhead for the poor quality and the replacement for the quality and product. I am happy with this ban as this may moot many Indian company to start their own business.

Tarun, For 3G is concerned Ericsson stands leading in the race followed by the Nokia-Siemens network and the Alcatel. American cos cant that easily enter into the indian market as far as they dont have a policy to make it impact

 

[badguy2000]

BG you are mixing two different sectors, Chinese companies are bidding for big infrastructure projects and it has nothing to do with telecom.

first of all, telecom net is one of most important infrastructures, as well as roads,ports ,electricity and railways.

 

[LETHALFORCE]

first of all, telecom net is one of most important infrastructures, as well as roads,ports ,electricity and railways.

yes but when Chinese are hacking into Indian embassies and govt offices what do you expect??

 

[tarunraju]

Frankly speaking, I am happy to see such a ban.

Morever, many CHinese netizens appeal that Chinese government should forbid CHinese companies to construct infrastuctures for India,because CHinese companies's invovement can save India lots of money on the construction of infastructures.

as the dicussion started On Chinese companies invovement of India infrastructure construction, hundreds of replies and comments have been left

MOD EDIT: Don't bring other forums here

It takes a special level of idiocy for any country to say no to a market the size of India. Suit yourself.

What you're essentially saying is along the lines of "the grapes were sour anyway" because you couldn't have it.