US formalizes ban on govt contracts to China's Huawei, others

US formalizes ban on govt contracts to China's Huawei, others”

China has warned India not to stop its technological giant Huawei Technologies from doing business in the country otherwise Indian firms operating in China may face a bleak future.

According to a report published by Reuters, Chinese officials are threatening India with "reverse sanctions" if Huawei is blocked from participating in the 5G trials.

Trade talks have broken down, a currency war has broken out, and China has struck back at US farm products, worsening the tone of the interaction between Washington and Beijing. "The #CCP strikes to sturdy-arming global locations into exposing themselves to surveillance and espionage".

Indian companies have a much smaller presence in China than other major economies. However companies together with Infosys, TCS, Dr Reddy's Laboratories Reliance Industries and Mahindra & Mahindra have a foothold there in manufacturing, healthcare, monetary providers and outsourcing.

A potential row over Huawei could provoke tensions in the broader India and China relationship just as the two sides have been engaged in renewed efforts to ensure their long standing territorial disputes do not escalate. However, New Delhi has not decided whether it would invite Huawei to take part in the trial, Telecoms minister Ravi Shankar Prasad told Reuters.

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Rashtriya Swayamsevak Sangh (RSS), widely regarded as the parent organization of ruling party Bharatiya Janata Party in India, said it's unsure of "relying on Huawei". "Globally, the Chinese language firms, together with Huawei, are dealing with allegations that they "underbid" initiatives, and place themselves and their institution again dwelling to snoop and allow them to close remotely, if required be", he wrote.

Huawei was the world's number two smartphone producer a year ago, ahead of Apple and behind South Korea's Samsung, as well as the largest provider of telecom networking equipment, but the firm has emerged as a key bone of contention in the wider China-US trade war.

"We firmly support the relevant Chinese companies in taking up legal weapons to safeguard their legitimate rights and interests", she said in a statement.

Huawei, the most high-profile company targeted, sued the USA government earlier this year to overturn the underlying NDAA provision that led in the interim rule released this week.

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