USA’s Huawei ban and its repercussions for India

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By Shayan Tariq

Ever since US President Trump banned China’s telecom giant Huawei on May 15, 2019, accusing it of collecting sensitive US information and supplying it to the Chinese military, China-US ties have gone downhill.

On the other hand, Huawei has categorically denied all these allegations leveled by the US against the company.

The ban has created deep anxiety among global cell phone markets, especially as the company is now the second largest mobile phone manufacturer in the world. The blacklisting of Huawei has also prompted Google to suspend the company’s access to Android software.

This ban is not being received well by tech experts around the world, with many labeling it as Mutually Assured Destruction by Washington.

Prasanto K. Roy, a tech writer and policy consultant writes in India Today:

“The Google-Huawei trade war by proxy has wide-ranging consequences. India better be cautious.”

Huawei has about 3.4% estimated share in India’s growing smartphone market. The company recently launched its P30 Pro flagship phone, with latest features such as Leica quad camera and macro lenses, in the Indian market. Even though Huawei is coming up with its own firmware to replace Android, it would still affect the Indian smartphone market as the market is dominated by Android. On the other hand, Huawei has also announced a three-year investment plan worth 100 million dollars to consolidate its position.

The Indian Telecom Regulatory Authority has announced that it would not invite Huawei for 5G trials. However, Huawei refutes any such announcement. According to the Authority, India imports 90% of its telecom network equipment i.e. routers, antennas or multiplexers mainly from Huawei. In wake of the US sanctions, India may resist US pressure along with Germany and the UK, as the Indian Telecom Authority argues that this equipment is strategically very important.

Prasanto in his India Today op-ed has clearly warned New Delhi to be cautious in this fight, as India has been testing its own protectionist policies and hopes that Trump would not retaliate on its 137 billion software and services exports.

The author Shayan Tariq is a Research Intern at Center for Research and Security Studies (CRSS), Islamabad and an IR graduate from Bahria University.