China is threatening India into using its 5G technology

China might impose 'reserve tariffs' on Indian firms doing business with the countryBCCL

  • There may be ‘consequences’ in store for India if it keeps Huawei from participating in the upcoming 5G network trails.
  • US Congressman, Jim Banks, tweeted that such threats amount to ‘blackmail’.
  • In the past, Mike Pompeo has stated that the US wouldn’t be able to work alongside any country that’s using Huawei’s 5G technology.
  • India is yet to make its decision.
Huawei’s future hangs in the balance with China threatening India with ‘consequences’ if it does not allow the tech giant to conduct business in the country.

India, on the other hand, is still mulling over its options before disclosing if Huawei will be a part of its upcoming 5G network trials. On the other hand, US too is on a threatening mode. Secretary of State Mike Pompeo had said earlier that if India allows Huawei, then the US ‘won't be able to work alongside them’.

China however went further ahead to impose ‘reserve sanctions’ on Indian companies doing business in China, according to Reuters. This will determine the fate of many tech giants like Wipro, TCS, HCL, and Infosys as well as Mukesh Ambani’s Reliance Industries, Tata Sons Limited, Adani Global, and Jindal Steel & Power.

US Congressman, Jim Banks, feels that this amounts to ‘blackmail’.


Rock and a hard place

The US China trade war isn’t limited to just the two countries anymore. Since US President Donald Trump blacklisted Huawei from doing business with companies in the US, other nations are now being forced to pick sides — including India.

If India does not allow Huawei to participate in India’s 5G network trials, then China may make it more difficult for Indian companies to conduct their business. But, if India allows Huawei, then the US ‘won't be able to work alongside them’, according to Secretary of State Mike Pompeo’s statements in the past.

Keeping Huawei from conducting trials in the country could also potentially revive tensions between India and China — something they've been working hard to keep at bay.

So far, the US and China are both winning the trade war, on their respective turfs.

In Southeast Asia, countries are still choosing Huawei for 5G network infrastructure despite warnings from the US. Malaysia, Thailand, Indonesia and the Philippines are already at various stages of running 5G trials in their countries.

In the West, Washington is changing the minds of Canada, the UK, Australia and New Zealand — collectively the Five Eyes intelligence sharing community.

Huawei’s participation in India’s 5G trials could determine whether or not it gets to have a go at the $27 billion market potential that the country represents.

See also:
Huawei’s next phone won’t have YouTube, Gmail or Google Maps

Huawei partners with Micromax as Honor's operations shrink in India

Samsung, Ericsson and Nokia get set for the big 5G windfall from India
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