Chinese Telecom Equipment Now Banned In India

Oracle

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India is even more justified to kick out Chinese telecom companies after these new revelations.
Kicking out Chinese telecom companies will result in job loss as well as losses in revenue. GoI should investigate the Huawei building, and if they are found guilty, they should be fined heavily. Right now, these are just assumptions. No one knows what is going on.
 

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Huawei part of Chinese spy network, says R&AW

7 May 2010, 0359 hrs IST,Bharti Jain,ET Bureau

NEW DELHI: Chinese telecom major Huawei may aggressively deny any link to the China's People's Liberation Army, but independent assessments of Indian intelligence agencies so far clearly point out that PLA remains a customer of the company and has become more involved with it.

The security concerns of Indian intelligence agencies about Huawei's close connection with the Chinese security establishment are shared by the US administration and had led the latter to cancel Huawei's 2008 bid to pick up stake in 3Com.

Even British intelligence agencies have warned that the Chinese could cripple IT-dependent telecom infrastructure and critical services like water, power and food supplies by embedding malware in equipment installed by firms such as Huawei and ZTE.

According to security assessments of Huawei Technologies put together by R&AW, the Chinese firm not only shares ties with the Chinese security establishment but is also suspected to be a part of its intelligence set-up. Not only was it founded by retired PLA officer Ren Zhengfei, a former director of the Information Engineering Academy of the PLA's general staff department, in 1988, but one of the members on the company's board was an officer of the PRC ministry of state security.

Huawei, intelligence inputs collected over a period of time point out, is responsible for sweeping and debugging all Chinese embassies and their expertise extends to bugging of the target telecommunication and computer systems. This explains Huawei's involvement in projects for military purposes in Iraq during the Saddam Hussein regime and also in telecom projects in Afghanistan during the Taliban rule.

Given the adverse reports of Huawei's alleged role in bugging systems for the benefit of the Chinese security establishment, the communication ministry has warned BSNL to test all equipment supplied by the Chinese firm for "trapdoors, black box, malwares" and check if it is susceptible to remote hacking before it can be allow to be operational.


Though BSNL was allowed to award telecom network contract to Huawei, it was to restrict the orders to southern states as they do not share borders with sensitive countries such as China, Pakistan, Bangladesh and Myanmar. The communications ministry also warned that networks provided by Huawei could go live only after all requisite audits were completed.

Security concerns over Huawei links with PLA are not restricted to Indian agencies alone. The Chinese telecom major's proposal to purchase stake in 3Com, the US firm manufacturing internet router and networking equipment, was shot down after the US administration questioned the deal's security implications. A reluctance of approval followed and the lucrative $2.2-billion deal — wherein Huawei had invited Boston-based private equity firm Bain Capital to jointly acquire 3Com — was cancelled in February 2008. The fact that 3Com makes anti-hacking computer software for the military and that Huawei has ties with PLA raised an alarm with the US authorities, leading them to disallow the deal.

According to R&AW reports, the US administration was concerned that Huawei would be able to alter the electronic equipment and computer software sold to the military in a way that would make these less effective in real-time operations.

Adverse security assessments of Huawei have also led British security agencies to warn of China's attempts to hit telecom infrastructure as well as water, power and food supplies through equipment installed by Huawei through covert modifications to compromise systems in ways that are difficult to detect and could later be disrupted or disabled.
 

duhastmish

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damn it - i use huawei usb drive to use internet.

sic chinese buggers ,can we watch our porn and play card game without being under surveillance.



-x-x-x-x-x-x-x-x-x-x-x-

i think indian policies are too weak , about chinese goods,

they can easily get away with anything , there should be a big watchdog committee over Chinese imports to india.
 

Daredevil

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Kicking out Chinese telecom companies will result in job loss as well as losses in revenue. GoI should investigate the Huawei building, and if they are found guilty, they should be fined heavily. Right now, these are just assumptions. No one knows what is going on.
Losing a handful jobs is nothing in front of national security. Fining the companies won't help, they will use other devious ways to spy on, the best thing is to kick them out once and forever.
 

Iamanidiot

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Kick the Huawei bastards out .these guys seem to be a serious threat.Why don't the IB go and raid the Bangalore R&D office first and question the employees
 

ajtr

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SECURITY FOCUS ON HUAWEI IN INDIA

By B.Raman

There has been an increasing focus by the Indian counter-intelligence agencies on the expanding presence, activities and business of the Chinese telecom giant Huawei, which is stated to have the largest mobile telephone business network in the world after Ericsson. Ever since the 1990s, there have been concerns in the Western countries over the suspected links of the company with the People's Liberation Army (PLA) and the Chinese intelligence agencies. The concerns initially started from the fact that the head of the company is a retired officer of the PLA. There were subsequent suspicions and allegations that many of its employees not only in China, but also in its overseas offices were either serving or retired officers of the PLA or the Chinese intelligence.

2. In fact,on the basis of the allegations made by the "Washington Times" in 2007, the US Committee on Foreign Investment in the US (CFIUS) made a review of the security implications of business deals between Huawei and some American companies. It called for a report on the subject from the office of the Director of National Intelligence.

3.Huawei, which greatly values its business in the US, took note of the security-related concerns being increasingly voiced in the US about the dangers of doing business with it and allowing it to acquire US companies, and reportedly volunteered to employ US citizens to supervise its contracts, which could have security implications. This offer was made following reports that it might be interested in acquiring a unit of the Motorola.

4. Wikipedia gives the following instances of security-related fears and enquiries relating to Huawei in different countries:


A report of the US Government's Strategic Studies Institute on Argentina published in September 2007 described Huawei as "known to bribe and trap clients". The report further detailed its alleged unfair business practices, such as customers being given "full-paid trips" to China and monetary "presents".
In February 2009, President of Indonesian mobile carrier Excelcomindo Pratama confirmed a data theft attempt by a visiting Huawei employee who "snuck in to General Manager's Network Planning Office"..
In 2005, the possibility of Huawei's bid on British telecommunications company Marconi led to a request from the Conservative Party to the British Government to "consider the implications for Britain's defense security". Marconi was later acquired by Swedish telecommunications giant Ericsson.
In a 2008 Military Report to the Congress, the Pentagon stated that Huawei "maintains close ties" to the PLA. In the same year, the proposed acquisition of US-based communications company 3COM Corp by Huawei led to a US Congress investigation and a subsequent determination by the Director of National Intelligence that "3Com-Huawei merger would undermine U.S. national security".
In March 2009, Alex Allan, the Chairman of the British Joint Intelligence Committee, briefed members of the British Cabinet about the "threat", allegedely posed by Huawei's equipment in the British national telecom network BT. ( My comment: The British media reported that the JIC Chairman had told the Cabinet at a special briefing that "Huawei components that form key parts of BT's new network might already contain malicious elements that could be activated by China and which could remotely disrupt or even permanently disable the network. Such action would have a significant impact on critical services such as power and water supplies, food distribution, the financial system and transport, which were dependent on computers using the communications network to operate." )

In September 2009, the Australian Security and Intelligence Organisation started investigating the alleged links between local Chinese Huawei employees and the Chinese military. ( My comment: This enquiry was started following complaints made to the Australian Government by some serving and former Australian employees of the Chinese company about its alleged suspicious activities).

5.In the US and other Western countries, the intelligence and security agencies keep a close watch on its activities. At the same time, this has not been allowed to come in the way of its legitimate business. This would be evident from the way it has been able to expand its business in the US and Europe despite all security-related fears and enquiries. Western countries follow a policy of allowing it to operate freely in areas and fields where there are no security-related concerns and curbing its activities where such concerns exist.

6. The suspicions and fears of the Indian intelligence agencies regarding the expanding presence and activities of the Chinese company arise from the results of the enquiries faced by the company in other countries, allegations of its close links with the PLA which cannot be dismissed lightly, the dangers of allowing it to operate from sensitive places such as Bangalore where it has an expanding research and development centre and the vulnerability to which our critical infrastruture could be exposed in times of a possible military conflict with China if we depend on hard and software supplied by Chinese companies.

7. One should not forget that Saddam Hussein lost his first Gulf War with the US in 1991 even before it started because the US from which he had procured most of his communication hardware and software managed to paralyse them before its troops went in . The headquarters of Saddam's army in Baghdad was totally cut off from all communications with its units in other parts of the country.

8. Prudence demands that in our enthusiam for expanding our economic ties with China, we should not allow suspect companies such as Huawei a free run of our country and access to our communications network, which could facilitate their collection of intelligence in times of peace and war and paralyse our critical infrastructure during any military conflict.

9. The Indian intelligence agencies have done the right thing in sounding the wake-up call. Instead of taking their warnings seriously and examining what mid-course corrections are called for in our policy of giving a free run to Chinese telecommunication companies, Shri Jairam Ramesh, Minister of State For Environment, has chosen to ridicule the intelligence agencies and the Ministry of Home Affairs for imposing what he has described as needless restrictions and for being paranoid about Chinese investments. He has been quoted as saying: " We are imagining demons where there are none."

10.One could not think of a more unfortunate, ill-informed and worrisome remark.
 

RAM

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India seeks 'clarifications' from Chinese telecoms supplier

DELHI — India has asked ZTE, one of several Chinese telecom firms seeking greater access to its market, to give "clarifications" on security concerns about the company's equipment, the home ministry said Friday.

A representative of the Shenzhen-based telecoms equipment giant met India's home secretary, G.K. Pillai, on Thursday and was asked to provide additional information on the equipment the company plans to sell.

"Clearance will depend on the clarifications that the ministry gets," said Home Ministry spokesman Onkar Kedia.

Indian telecom operators say the government is restricting imports from Chinese companies because of Indian intelligence agency fears that "spyware" could be embedded in the equipment.

Earlier this week, Pillai said India was particularly concerned about imports of telecom equipment for use in border areas.

Chinese telecom companies have big hopes of doing business in the fast-growing Indian mobile market, which has nearly 600 million subscribers and has been adding more than 20 million users a month.

Indian government officials have insisted there is no blanket ban on Chinese telecom equipment imports but have stressed that all suppliers, Chinese or otherwise, must meet security regulations.

However, Chinese firm Huawei Technologies and ZTE say no new contracts have been approved since February 18, according to the Economic Times.

The Economic Times also reported Friday that Huawei was willing to disclose the source code for its network systems to persuade India its equipment presented no risk.

China's ambassador to India, Zhang Yan, who met the Indian home minister Thursday, said he hoped "all relevant issues will be resolved in due course".

Pillai earlier in the week said: "All border areas are sensitive and where such equipment comes to be positioned in some of these areas, we have certain concerns."

Chinese telecom equipment makers sold over three billion dollars worth of equipment in India last year, accounting for an estimated 15 percent of their total sale


http://www.google.com/hostednews/afp/article/ALeqM5hugfI0WggFjj9UtcQBZgSFYMO5QA
 

nimo_cn

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should deny the chinese this revenue
Has the word "win-win" ever struck your mind?

Chinese companies are there to earn money, and India companies are purchasing Chinese telecom equipments to earn money easier. Both Chinese companies and Indian companies will benefit from that cooperation.

I will not deny that Indian government's banning on Chinese telem equipments will hurt Chinese companies such as Huawei and ZTE because India is the largest foreign market for both Huawei and ZTE. So if India's intention is to harm the interest of China, then you certainly have done a good job by issuing that ban.

But i am pretty sure that India can not benefit from that ban at all, unless you count China's loss as your gain ( which is exactly what is happening here). Without Chinese telecom companies, India's cellphone services providers have no alternative but to turn to western companies whose equipments are much more expensive than Chinese companies', as a result, Indian people are going to pay a fortune for that.
 
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Armand2REP

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Without Chinese telecom companies, India's cellphone services providers have no alternative but to turn to western companies whose equipments are much more expensive than Chinese companies', as a result, Indian people are going to pay a fortune for that.
Euro is trading down 20% and looks to stay that way for awhile. Buying from Alcatel or Siemans won't be that much more expensive now. Our equipment is better quality than Chinese and lasts much longer. It is a better decision to buy European with a low Euro evaluation.
 

badguy2000

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Euro is trading down 20% and looks to stay that way for awhile. Buying from Alcatel or Siemans won't be that much more expensive now. Our equipment is better quality than Chinese and lasts much longer. It is a better decision to buy European with a low Euro evaluation.
hehe,Alcatel and Simens? you mean the guys which are ass-kicked by Huawei and ZTE all over the world?
pls check the yearly report of Alcatel, Simens and Huawei before you blahing,ok?

Huawei's profit margin is much more than any of its main rivals,although Huawei's products are much lower.
 

Pintu

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http://www.business-standard.com/in...t-guidancechinese-equipments-vendors/94494/on

Tata seeks DoT guidance on Chinese equipments, vendors
Press Trust of India / New Delhi May 16, 2010, 16:53 IST

Amid a raging controversy over the ban on Chinese telecom equipments due to security concerns, leading mobile operator Tata Teleservices has sought to ascertain the exact nature of the problem with these equipments or vendors from the government.

The company shot off its second letter to the Department of Telecom (DoT) in the last four days, seeking clarifications from the government.

"As a Tata company, it goes without saying that we are committed to protect national security and hence, we seek your guidance as to what is wrong with these equipment or vendors and what needs to be done by us or by these vendors to remain compliant with the requirements of national security," TTSL said in its letter to DoT Secretary P J Thomas.

Delays in giving clearance for essential equipments is adversely impacting network quality and customer services in general, the company said and raised another important issue that equipment being provided by some of the European vendors was also manufactured in China.

"We need to understand that many European brands are also getting their network equipment manufactured in China, what is going to be the policy of DoT as regards such equipments," it said.

The government in December last year amended the Unified Access Service (UAS) licence and stipulated that security clearance should be obtained before placement of purchase orders for procuring telecom equipment or software in view of national security concerns.

CDMA mobile operators especially have deployed networks procured from the Chinese vendors and any blanket ban on such vendors could hamper future growth as well existing services. Tata and Reliance Communications are two major CDMA operators and have over 160 million subscribers.

Representatives of Chinese telecom firms like Huawei and ZTE met senior government officials last week and offered every support to ensure that there was no security threat from these equipments.

"We had a meeting. Talks are going on. We have appealed to the government. We have put forward our thoughts. Let's see," ZTE India Head D K Ghosh said after the meeting, which lasted for about half an hour.

"The talks were held in a positive environment," he said when asked whether he was happy with the talks.

On the same day, Chinese Ambassador to India Zhang Yan also met Home Secretary G K Pillai.

Tata also raised another issue and said that there are many equipments which have nothing to do with network "espionage, malware, etc", but even such equipments have been rejected because these are from Chinese vendors. It urged the DoT to give fast clearance for such products.
 

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Indian Dependence on Chinese Equipment & Technology

By B Raman

The Pakistan Railways is reportedly facing a crisis because of the unserviceability of 32 of the 69 locomotives bought from a Chinese company. It has been alleged that the Railways were forced to buy these locomotives by President Asif Ali Zardari and his advisers even though expert opinion in the Railways was against buying locomotives from a Chinese company, which turned out to be sub-standard. It has been reported that to keep the Railways going, they are thinking of ordering 75 new locomotives from non-Chinese sources. The text of a report on this subject carried by "The News" of Pakistan on May 15, 2010, is attached.

This has an important lesson for India, which has been developing a dependence on Chinese equipment and technology in key sectors of the economy such as electricity production and mobile telephone networks. Procurement of mobile telephone network equipment and technology from Chinese companies by Indian private companies on which there were no major restrictions till last year, has now been slowed down following concerns reportedly voiced by the Indian intelligence agencies over the security implications of a growing dependence on Chinese equipment and technology in this sensitive sector. It has been reported that the Government has not cleared any proposal for fresh procurement during the last four months and has undertaken a study of the concerns voiced by the intelligence agencies. In the meanwhile, pressure has been mounted on the Government to reverse its curbs by the Chinese authorities through their Embassy in New Delhi and by officials of the Chinese companies.

A point made by the Chinese companies is that while India has suspended the procurement of mobile telephone network equipment and technology from China on security grounds, it continues to import similar equipment and technology from Western countries. The question posed by them is: If similar Western equipment and technology do not pose a security threat, why should Chinese equipment and technology pose a threat? An insinuation made is that the real reason for the suspension of the procurement from China is not secuity, but concealed commercial motives to favour Western companies.

Even if what the Chinese companies say is correct, the Government's caution in buying similar equipment and technology from China, even at much lower prices, is understandable because China is still perceived in India as a possible adversary. India and China had fought a war in 1962 and one should factor into our decision-making the possibility that there could be another military conflict if the border dispute is not satisfactoily settled.When the intelligence agencies talk of the security implications, they keep in view not only the circumstances of today, but also what could happen in future if the bilateral relations deteriorate.

While the Chinese and their supporters in India are unhappy over the curbs imposed by India on security grounds, they tend to play down the fact that the Chinese themselves had imposed similar restrictions on security grounds on Indian information technology companies in China. Mr.Zhu Rongji, the former Chinese Prime Minister, had allowed Indian IT companies to open branches in Shanghai. But for many years, they were not allowed to have a presence in Beijing. Chinese Governmental and non-Governmental entities were secretly advised not to give any contracts to the Indian companies. The Indian companies survived in Shanghai with the contracts won by them from the local offices of Western multinationals. Only now the Chinese have allowed Indian IT companies to have a presence in Beijing and other cities and permitted some of their banks to award contracts to the Indian companies. Even now, will the Chinese authorities allow Indian IT companies to operate in Tibet and Xinjiang?

While security is and ought to be an important consideration in the case of telecommunication equipment, serviceability of the equipment and assured future supplies of spare parts should be equally important considerations in sectors relating to key segments of our economy such as power production. The Pakistan Railways developed an unhealthy dependence on Chinese equipment and it is now threatened with serious dislocation despite the excellent state-to-state relations between the two countries.

We have been developing a dependence on the Chinese for our thermal power stations because the Chinese power equipment like their telecommunication equipment is much cheaper as compared to Western and Japanese equipment and the Chinese have a reputation of completing their projects in time. Other important considerations such as the quality and serviceability of the equipment and the guarantee of future supplies of spare parts are not given the attention they deserve.

Before deciding to order any equipment and technology from the West, an important question considered by us is: What are the chances of the Western Governments suspending the supply of spare parts in future to exercise political pressure on India? The US had not hesitated to use this weapon on some occasions in the past. If tomorrow there is a military conflict between India and Pakistan and the Chinese authorities, to help out Pakistan, suspend the supply of spare parts for our power projects set up with their assistance, what will happen to our power production and the economy as a whole?

Are such questions carefully considered before allowing the procurement of Chinese equipment and technology? One has the impression that in our keenness to improve bilateral trade with China, which is racing towards the annual target of US $ 60 billion with China being the main beneficiary with a big trade surplus in its favour, we are not paying attention to important questions such as what I have explained above. Let us by all means allow a free hand in India to Chinese manufacturers of consumer goods, but in respect of other goods of a sensitive nature which could affect our national security or future economic stability, we have to be more careful.

Since India and China will continue to be potential adversaries so long as the border dispute is not settled, the argument that we should treat the Chinese companies in the same way we treat the Western companies does not hold good. Security and guarantee of future supplies should be important considerations in the case of Western companies too, but certain risks which we can afford to take in the case of Western companies, we cannot in the case of Chinese companies.

http://www.indiandefencereview.com/...n-chinese-equipment-technology.html#more-2280
 

Oracle

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India should not discriminate against our telecom products: China

BEIJING: China said on Monday India should not discriminate against Chinese telecommunication products, but it stopped short of an outright condemnation of New Delhi's reported move to bar products by ZTE Corp and Huawei Technologies. It called for talks between the two governments on the issue.

"Any rule should be fairly applicable to all companies including Indian, Chinese and western companies," Chinese Ministry of Commerce spokesman Yao Jian said at a briefing in Beijing. "India should provide an open, fair and transparent environment," he said.

Yao said the governments of the two countries should intensify "consultations and cooperation to address problems". The Indian government should also allow Chinese companies to proceed with the contracts that they have already won, he said.

The remarks came amidst reports that India has asked telecom operators to avoid buying Chinese equipment because of fears that there were spying software embedded in them. The comments suggest Chinese government does not want to take the path of confrontation and prefers to persuade Indian leaders to discuss the issue.

Yao said India may carry out any investigation in line with international rules to verify the truth about the allegations. But it should do nothing in a rushed manner.

On its part, the Indian government has repeatedly denied any country-specific ban. But there are fears in the industry that Chinese equipment would be rejected when telecom operators seek security approval from the government as this is required under the rules.

http://timesofindia.indiatimes.com/...elecom-products-China/articleshow/5941560.cms
 

redragon

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China should sue India for the discrimination in WTO, given India only question Chinese companies for that matter.
 

Oracle

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China should sue India for the discrimination in WTO, given India only question Chinese companies for that matter.
Your whining could have been accepted, had you been through the whole thread, starting from Page 1. It is clearly a security issue from GoI's stand. I for one am fearful of opening even credible .cn sites.
 

nimo_cn

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China should sue India for the discrimination in WTO, given India only question Chinese companies for that matter.
India government has been denying that an offcial ban has been issued on Chinese telecom equipments for the fear of China bringing that to WTO.
 

tarunraju

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China should sue India for the discrimination in WTO, given India only question Chinese companies for that matter.
In matters of national security, WTO can't come in the way. You don't have a case.
 

nitesh

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India government has been denying that an offcial ban has been issued on Chinese telecom equipments for the fear of China bringing that to WTO.
So there is no need for Chinese to worry right it is business as usual
 

nimo_cn

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Your whining could have been accepted, had you been through the whole thread, starting from Page 1. It is clearly a security issue from GoI's stand. I for one am fearful of opening even credible .cn sites.
Don't be naive! National security is just an excuse for India to restrict Chinese companies from doing business in India.

So far, India still hasn't provide any proof to substantiate its allegation that Chinese companies have embedded malware in the equipments
And India is still unwilling to unveil the result of test on Chinese equipments, and hasn't elaborated on the reason why Chinese equipments didn't pass the Security screening yet.

Both ZTE and Huawei are very confident with their products and have requested an open test from third-party to prove the innocence of their equipments. But Indian authority has not replied to that request yet.

It is Huawei even agreed to unveil the source code of IOS, if Indian governmnet is still concerned with the security problem, just scrutinize the source code.
 

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