The alleged "security issues" for the world's largest HUAWEI GSM blocked orders

HUAWEI's pace in the India market suffered setbacks. Yesterday, according to local media reports in India, India because of security issues, HUAWEI refused to become India state owned operator BharatSancharNigam (BSNL) equipment suppliers, while HUAWEI investment in India local infrastructure projects again stop close to $one hundred million. In this regard, China Trade Promotion Association expressed strong dissatisfaction, called on the government of India to complete the security audit as soon as possible to HUAWEI.

HUAWEI said that the matter is still in the approval. But we're worried". It is understood that HUAWEI began to set up software development center in India from 2001 to early 2005, HUAWEI plans to India software center and put forward the capital increase of $40 million, $60 million investment in India to build a new production base, but the plan has not been approved by the government of India.

HUAWEI stakeholders on the first financial daily said that the submission of the two investment projects have been in the process of approval, India did not say why HUAWEI can not pass.

In March this year, BSNL issued a tender for the mobile network partners build capacity of 63 million 500 thousand lines, the estimated total value of $4 billion 800 million, which is currently the largest amount in the world a GSM order, foreign media said India has rejected the HUAWEI in project bidding.

BSNL's bid said that foreign companies to bid must have 30% local production equipment, or cooperation with local enterprises. But there have been reports that BSNL's CDMA project HUAWEI is working with local enterprises, but because of the problem of this partner, HUAWEI did not deliver on time, BSNL HUAWEI punishment. Therefore, the choice of independent bidding HUAWEI, but because of the localization of HUAWEI production has not yet been approved, can not achieve 30% local production. To bring great obstacles to the bid.

Industry analysts pointed out that India did not apply for a reason is that HUAWEI is a state-owned enterprise, this is a misunderstanding of local India HUAWEI, HUAWEI is definitely a private enterprise".

China Trade Promotion Association spokesman, deputy secretary Wang Jinzhen explicitly denied the so-called "HUAWEI has a military background" argument, he said, HUAWEI has been doing business in more than and 150 countries around the world, there is no reason for India to enter the India market HUAWEI.