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China warns India of reverse sanctions if India bans Huawei

Is China blackmailing India into using Huawei 5G infrastructure ?

Huawei Technologies Co. Ltd., the China based telecommunications equipment company has asked India not to block Huawei from doing business in India or else it will impose reverse sanctions on Indian companies doing business in China.

As of now, India is about to hold trials for setting-up the next-generation 5G network in the next few months. It has not yet decided whether to invite Huawei for installing 5G in India or not.

India’s Ambassador to China – Vikram Misri, was summoned by the Chinese Foreign Ministry on July 10, 2019 where they informed him that U.S. is deliberately trying to kill Huawei and Chinese economy. The officials of the Chinese Foreign Ministry also warned Vikram Misri of reverse sanctions on Indian firms operating in China, if India goes ahead with the banning of Huawei.

Speaking on the occasion, the Director of the Foreign Ministry Information Department, People’s Republic of China – Hua Chunying said, “Huawei has carried out operations in India for a long time, and has made contributions to the development of Indian society and the economy that is clear to all.”

She further added, “On the issue of Chinese enterprises participating in the construction of India’s 5G, we hope the Indian side makes an independent and objective decision, and provides a fair, just and non-discriminatory commercial environment for Chinese enterprises’ investment and operations, to realise mutual benefit.”

Indian conglomerates like Reliance Industries Ltd. (RIL), Tata Consultancy Services (TCS), Dr. Reddy’s Laboratories, Infosys, Mahindra & Mahindra have presence in China across sectors like manufacturing, health care, financial services and outsourcing.

Talking about China’s decision, the U.S. Representative for Indiana’s 3rd congressional district – Jim Banks tweeted, “China is now blackmailing India into using #Huawei for its 5G infrastructure – they know no bounds! The #CCP moves to strong-arming countries into exposing themselves to surveillance and espionage.”

It is to be noted that the move is likely to impact the Indo-China relationship especially when Prime Minister of India – Narendra Modi is set to host the President of China – Xi Jinping in October 2019 at Varanasi, where the 2 leaders will discuss the trade issues including the U.S.$ 53 billion trade deficit in 2018-19 which India is concerned about.

For the records, United States (U.S.) has already blocked Huawei in their country. The U.S. believes that Huawei is leaking private and confidential data to Chinese Government which poses a threat to national security of the U.S. and other nations using Huawei equipment and services. However, Huawei has rejected all the claims and has said that the company is independent from the Government and has never compromised on security and privacy terms. In addition, U.S. has asked its allies to ban Huawei in their country. Australia, Canada and Japan have already blocked Huawei.

Besides, the Chief Financial Officer of Huawei – Meng Wanzhou (also the daughter of Huawei’s founder, Ren Zhengfei) was arrested in Vancouver by Canadian Authorities on December 1, 2018. She has been accused of bank fraud with regards to sanctions against Iran. Meng was later released on bail with restrictions on freedom of movement. She is presently undergoing court trial with regards to extradition request placed by U.S.

She has filed a lawsuit in the British Columbia’s Supreme Court in Canada accusing Royal Canadian Mounted Police (RCMP), Canadian Border Services Agency (CBSA) and the Federal Government of unlawfully detaining her and interrogating her for 3 hours without even advising her of Constitutional Rights. Apart from this, her electronic gadgets, including an iPad and luggage were illegally searched without even informing her that she was under arrest.

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