Govt. stops Huawei march
By agencies   |   Tuesday, 16 August 2005, 19:30 IST
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NEW DELHI: Raising concerns about China’s focus on cyber warfare, the central government has put on hold Chinese telecom giant Huawei Technologies proposal to bring in $60 million foreign equity for its Indian arm, the Times of India daily reported. The government is evaluating the risks in exposing strategic Indian telecom networks to the Chinese with the defense ministry, Indian intelligence agency Research and Analysis Wing (RAW) and the Intelligence Bureau (IB) speaking against allowing Huawei to bring in more equity. The government faces a dilemma between cheap Chinese equipment and national security. The issue was discussed at a high level meeting headed by cabinet secretary a few days ago. Alarm bells have been sounded as it is felt that there may not be enough capability or technical expertise to build adequate safeguards to address security concerns in the sensitive area of telecommunications. “This company has been responsible for sweeping and debugging operations in the Chinese embassy. In view of China’s focus on cyber warfare, there is a risk of exposing our strategic telecom network to the Chinese,” the paper said quoting RAW officials. The ministry of external affairs has said the company has come in for “adverse notice” with India’s security agencies expressing “reservations regarding the company’s link with the Chinese military and intelligence establishment, their clandestine operations in Iraq, and Taliban ruled Afghanistan and close proximity with the Pakistan army.” Huawei Telecommunications India Pvt Ltd., which is the subsidiary of the Huawei Tech Investment Co., Hong Kong had applied for clearance of its foreign investment proposal in March 2005. The company has so far been engaged in software research, but the new proposal for investment will allow the company to participate in turnkey telecommunications and information technology as also infrastructure project, including installation, training and annual maintenance.

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