India will shut China's Huawei Technologies Co and ZTE Corp out of its 5G trials in the wake of strained relations following violent border clashes. The controversial tech companies will be effectively barred from participating in India's 5G trials and networks.
The decision regarding the ban on these companies is likely to be announced in a week or two following the Prime Minister's Office (PMO) approval, sources told Bloomberg.
The Ministry of Communications will implement a government notification issued on July 23 (2020), that proscribes bidders for sensitive projects from nations India shares land borders with.
The amended investment rules stated in the notification are enforced by the government in view of national security concerns, the report said.
The ministry will recommence pending discussions regarding approvals for 5G trials by private companies comprising Reliance Jio Infocomm Ltd, Bharti Airtel Ltd, and Vodafone Idea as they were deferred because of the nationwide lockdown.
India's decision to keep Huawei and ZTE from bidding for its 5G trials resonates with the actions taken by the US, UK, and Australia, as these nations have also raised red flags about these companies' links with the Chinese government.
The US Federal Commission has formally proclaimed both companies as national security threats. Meanwhile, the 5G auction process may spill into next year, the news agency reported.
Although India granted permission to Huawei to participate in its 5G trials earlier this year, the country toughened its stance against Chinese companies following China's actions along the Line of Actual Control (LAC) in Eastern Ladkah's Galwan Valley in early May.
The military stalemate, which turned violent in June leading to the killing of 20 Indian Army troops and an unknown number of Chinese soldiers, is now in its fourth month.