This Blog is written by Miss. Tamanna
Gupta Student of RGNUL,
Punjab
Introduction
Huawei is a private company which stated to be one of the leading global providers of avant-garde information
& communication technology. It is a forerunner when it comes to telecom
supplies. Founded in the year 1987, Huawei operates in more than 170 countries
and has a workforce consisting of more than 1.8 lakh employees. Despite such
formidable credentials, Huawei has found itself embroiled in controversy in the
present scenario, wherein several countries have banned the usage of Huawei’s
components and network-related equipment, under the apprehension that Huawei’s
proximity to the Chinese government has led to espionage and spying on
confidential information in several countries. Huawei claims these accusations
are a part of a bigger scheme to reduce Huawei’s credibility and are completely
baseless in nature. Huawei refutes the accusations and continues to maintain its
innocence.
United
States- Legal Actions initiated against Huawei
The United States of America
displayed its long-standing hostility towards Huawei by banning companies from
using Huawei Equipment in 2012. Huawei was then added to the United States
Department of Commerce’s Entity list through an executive order which
effectively blacklisted the company throughout the USA. Google, Qualcomm, and Intel
complied with the order while several other companies started turning to
alternatives for business, resulting in several losses for Huawei. In the
interests of fairness, the USA did grant a reprieve that allowed Huawei to maintain
its current products, and the reprieve was extended, after which the full
weight of the ban was to be felt. President Donald Trump called the company
“very dangerous”, while the company’s spokesperson called the actions extremely
unjust and accused the US government’s action of adding the company’s
subsidiaries in the entity list politically motivated.
Later, in the G-20 Summit held in
Japan, President Trump hinted at a possibility that the ban may be revoked,
while simultaneously permitting some US companies to trade with Huawei.
Indian scenario in the Contemporary Context
Both the USA and China are
pressurizing India in the issue. While the USA expects India to follow the
footsteps of the “Five Eyes” alliance, comprising of USA, United Kingdom, New
Zealand, Australia, and Canada, in banning Huawei before India’s 5G trials
start, Chinese President Xi Jinping won’t take the potential ban well.
Recently, the India-US ICT
dialogue was held in New Delhi, where the USA suggested alternatives to data
localization while applying pressure on India in the current issue, urging
India to work only with credible sources while deploying 5-G, and keeping
Huawei out of the purview. The USA stressed the importance of not partnering
with companies such as Huawei. While the Indian delegation in the India-US ICT
dialogue consisted of officials from NSC, DRDO, Home ministry, Telecom ministry, etc, the US Delegation was led by Robert Strayer, who presently serves as the
Deputy Assistant, Secretary of State for Cyber & International commerce and
Information Policy. Important data localization and greater coordination and
cooperation in the field of telecommunication were mutually agreed upon in the
conference. India’s decision is still awaited in this regard.
Implications
for the Telecom Sector as a Sector of Indian Economy
While several officials and
representatives expressed different views on the issue, it is imperative to
understand the implications in case India leans towards any country.
In the case where India decides
to allow Huawei to conduct the 5G trials in India, several benefits arise.
Without the existence of Huawei, India could possibly face unnecessary delays
in the promulgation of 5G networks by more than one-year, Higher costs in 5G
deployments and several other losses. Spectrum sales could suffer and the
services would be costlier since Huawei was the forerunner when it came to the cost-efficiency of its products. It would also lead to a reduction in investments
due to mistrust in the newer and emerging companies, which do not have the same
brand equity as Huawei.
It will also lead to a shutdown
of present services since India was heavily reliant on Huawei in several
aspects. Sunil Mittal expressed his opinion on the lines of the above scenario,
stating that India must use this scenario in this favor, and Huawei must be in
the play. Mittal believes Huawei should be allowed in India. The above actions
will also be the torchbearer of good relations between India and China.
If India decides to follow the
footsteps of the Anglophone countries and bans Huawei, it would have a drastic
effect on India-USA relations and would negate the alleged threats of spying
and espionage, as India and China have always shared a contentious
relationship, and the possibility that Chinese government is using Huawei as a
scapegoat to spy on Indian authorities cannot be ignored.
S Jaishankar, Minister of External Affairs, states that the issue is a
technical one, not a political one, and should be treated accordingly, with
India taking a bilateral approach. It is incomplete contradistinction to the
statement of Bharti Mittal, who emphasized the technical prowess of
Huawei, stating that the technology provided by Huawei is better than other
technologies, and Huawei is making great developments in the present scenario.
Wilbur Ross, the present United States Secretary of Commerce presented the US as a
geopolitical partner to India and said that India must not expose itself to
untoward risks. In a similar vein, Lt Gen Dr. Ranjit Pant, Chief, National Cyber
Security Coordinator placed security at the top in the list of priorities to
tackle. Both options are equally lucrative in the present scenario, and
India has the upper hand in this issue.
Suggested
Course of Action
In the light of the crisis Huawei
is facing, Huawei is promising several actions if it is allowed to conduct
business in India. Huawei chairman Liang Hua stated that the company is ready
to enter a “No-spy agreement” with the Indian Government, also ensuring that
there shall be no interference, snooping over networks, or transfer of data to
any governmental authority. In the same direction, Huawei India’s Chief
Executive Jay Chen stated that the objective is to inspire the commitment,
trust and confidence of the consumers, and Huawei is taking every step in this
regard. Chen also stated that the company was willing to localize its
operations to suit the Indian scenario and to alleviate the allegations on the
company. In the “No-backdoor agreement”, if any instance of espionage or spying
is found, India shall have the right to ban Huawei from further operations in
India.
In light of the above
promises, India should allow Huawei to continue its operations in India and it
is in the benefit of India to adopt an open and collaborative approach.
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