India said it would block 59 Chinese apps such as TikTok and WeChat, claiming they are a threat to national security. And now it's reportedly assessing whether Huawei and ZTE can participate in its 5G rollout.
"The China-India ... dispute, compounded with the economic stress caused due to the pandemic, has likely forced the government thinking to adopt a strategy similar to U.S. to potentially retaliate in a way where it would hurt China the most," Neil Shah, research director at Counterpoint Research, told CNBC.
India's biggest mobile network, Reliance Jio, uses Samsung for its older 4G network. The other two largest players — Bharti Airtel and Vodafone Idea — use a mixture of vendors including Huawei. All three carriers have submitted applications to do 5G tests with various vendors including Huawei, Indian publication theHuawei gear makes up one-third of Bharti Airtel's current network and 40% of Vodafone Idea's network, according to Counterpoint Research.
It would be a "significant loss" for Huawei and ZTE if the government goes ahead and bans them, Shah said.'Tide is turning'from their 5G networks, alleging that its gear could be used by Beijing to spy on citizens of foreign nations. Huawei has repeatedly denied that it would let this happen. On June 24., U.S. Secretary of State Mike Pompeo declared that "the tide is turning against Huawei as citizens around the world are waking up to the danger of the Chinese Communist Party's surveillance state."
The latest report that India is assessing whether to ban Huawei and ZTE will likely add to Pompeo's confidence.
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