China’s Huawei Technologies Co and ZTE Corp are set to be kept out of India’s plans to roll out its 5G networks as relations between the two countries hit a four decade low following deadly border clashes.
India will apply investment rules amended on July 23 that cite national security concerns to restrict bidders from nations it shares land borders with to keep out the companies, people familiar with the issue said, asking not to be identified citing rules.
The Ministry of Communications will restart pending discussions on approvals for 5G trials by private companies including Bharti Airtel Ltd, Reliance Jio Infocomm Ltd, and Vodafone Idea Ltd that were delayed by the nationwide lockdown, they said.
India’s decision echoes actions by the US, UK and Australia, which have raised red flags about the companies’ Chinese government links. The US Federal Communications Commission has officially declared both companies national security threats. The process to auction 5G may spill into next year, according to the officials.