Increasing trade / trust deficit with Chinese telecom equipment makers?

Telecom Lead India: Anand Sharma, Union Minister for
Commerce, Industry and Textiles, says Chinese export to India relies on
manufactured items meeting the demand of sectors like telecom and power in
India. India wants to improve trade with China. Can we afford to discriminate
against Chinese equipment makers Huawei and ZTE in Indian telecom market?

The minister says Chinese companies supply relevant
equipments at competitive prices. But we are seeing several reports prepared by
Indian bureaucrats that have the potential to reduce the exposure of Huawei and
ZTE in Indian telecom space. If these companies are supplying relevant
products, why can’t India solve the problems with Chinese telecom equipment
makers.

According to Sharma, India’s exports are characterized by
primary products, raw material and intermediate products. Further there are
non-tariff barriers on imports of agricultural products in China as well as
limited market access of Indian products.

The Government of India has been addressing the issue of
growing trade deficit at the highest level. At the Ministerial level, we have
India-China Joint Group on Economic Relations, Trade, Science and Technology
(JEG) where trade related issues are taken up regularly. The Eighth Session of
India-China JEG was held on 19th January, 2010 in Beijing.

The telecom industry feels that there is a lack of
transparency when we deal with Chinese equipment makers. India is yet to
officially communicate to Chinese vendors on the security aspects. If there is
an issue, there should be proper dialogue to discontinue such activity, if any.

With a view to reducing trade deficit, efforts are also
being made to diversify the trade basket with emphasis on manufactured goods.
India is also pursuing market access issues to tackle non-tariff barriers in
the Chinese market at different fora. Business to Business relations are
encouraged through schemes such as Market Access Initiative (MAI)/Market
Development Assistance (MDA). Apart from these measures the Government of India
is alive to the challenges of import surges and various unfair trade practices
through available safeguard measures under WTO.

As an outcome of 8th JEG a Memorandum of Understanding
(MoU) dated 19th January 19, 2010, on extension of Trade and Economic
Cooperation was signed between India and China. As per Para III of the MoU,
Realising the potential of IT and ITES in expanding their bilateral
cooperation, the two sides will take initiatives to encourage their industries
to collaborate to mutual benefit and explore new opportunities.”

Details of trade between India and China during last
three years are given below:-

           
TABLE-1:  Bilateral Trade Statistics  

(P)* Provisional     (Source;
DGCI&S) 

Can Indian telecom ministry take a lead role to improve
India’s relationship with China and Chinese telecom makers?

editor@telecomlead.com