Chinese companies not welcome in India?

Bruce Einhorn

It’s one thing for India to roll out the welcome map for Western multinationals looking to take advantage of Indian talent. But what happens when the companies that want to set up Indian R&D operations are from India's longtime rival, China? Huawei Technologies, China’s No. 1 telecom equipment company, has had a small R&D center in Bangalore for a few years but has had trouble winning business from Indian operators – and clearly one reason has been Indian worries about being too nice to a company founded by a former member of China’s People’s Liberation Army, the same People’s Liberation Army that back in the days of Mao and Nehru clashed with India over disputed territory along the mountainous border between the two countries. Now China’s other world-class telecom equipment maker, ZTE, is trying to break into India – and having similar problems. Last week, Indian telecom operator BSNL disqualified the Chinese company from bidding for contract worth $4 billion for GSM equipment. You might say, that’s just business – and since Motorola also got the axe from BSNL, there’s clearly no anti-Chinese bias.

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