Electronics

Reuters exclusively reported on May 7 that the Indian government has suspended the license to import wireless network equipment from China for six months, which forced mobile and computer manufacturers from China and the United States to postpone the sale of their products in India.

According to two industry related sources, since at least November last year, the Ministry of Communications and Information Technology of India has stopped the electronic equipment products imported from China that contain unlimited networks, including Bluetooth speakers, wireless headsets, smart phones and watches, and laptops. Wait.

Since then, related companies from China, the United States and South Korea have submitted more than 80 customs clearance applications to the Indian government. According to sources, this includes companies such as Dell, HP, Xiaomi, OPPO, Vivo and Lenovo. Some Indian companies that import finished electronic equipment from China have also submitted applications, and some companies have launched lobbying.

The Ministry of Communications and Information Technology of India did not respond to media comment. Reuters speculated that this move may be due to the deterioration of relations between India and China and Prime Minister Modi's call for more economic independence. Since March 2019, the Indian government has revised its previous regulations to not allow companies to independently declare the import of wireless equipment, but the government issues licenses.

A source believes that the purpose of the Indian government is to "press commercial companies to produce these electronic products in India", but he is not optimistic about the prospects.

"Science and technology companies are in trouble. Local production in India means a large investment and a longer return period. On the other hand, the Indian government imposes artificial barriers on imports, which will cause the company to suffer potential losses."

With its domestic market size and export potential, India has become the world's second largest mobile phone manufacturer after China. However, technical analysts and industry professionals believe that India’s domestic market is not large enough to attract large investments from companies as a production location for IT products and wearable smart devices.

In the past year, after India's provocations in the border area and difficulties in Sino-Indian relations, the Indian government has frequently "played a little pigtail" on bilateral normal commercial and trade exchanges. At the end of November last year, foreign media reported that India is starting from the quality inspection standards of imported goods and strictly controlling electronic products imported from China. Brands including Apple’s Iphone12 and Chinese Xiaomi mobile phones have experienced customs clearance delays in India. .

On November 26 last year, Chinese Ministry of Foreign Affairs spokesperson Zhao Lijian responded to this incident. The relevant Indian practices clearly violated market principles and WTO rules, severely harmed the legitimate rights and interests of Chinese companies, and were not conducive to domestic investment in India and the development of related Indian industries. The essence of China-India economic and trade cooperation is mutual benefit and win-win results. We have always urged the Indian side to immediately correct relevant discriminatory practices to avoid causing more harm to the cooperation between the two sides. India should provide a non-discriminatory and level playing field to all foreign companies, including Chinese companies.