China warns India of ‘reverse sanctions’ if Huawei blocked

New Delhi, August 6

China has told India not to block its Huawei Technologies from doing business in the country, warning there could be consequences for Indian firms operating in China, sources with knowledge of the matter said.

India is due to hold trials for installing a next-generation 5G cellular network in the next few months, but has not yet taken a call on whether it would invite the Chinese telecoms equipment maker to take part, telecom minister Ravi Shankar Prasad has said.

Two sources privy to internal discussions in New Delhi said India's ambassador in Beijing, Vikram Misri, was called to the Chinese foreign ministry on July 10 to hear China's concerns about the US campaign to keep Huawei out of 5G mobile infrastructure worldwide.

During the meeting, Chinese officials said there could be "reverse sanctions" on Indian firms engaged in China should India block Huawei because of pressure from Washington, one of the sources said. — Reuters

The controversy 

Huawei, the world's biggest maker of 5G network gear, is at the centre of a geopolitical tug-of-war between China and the US. US President Donald Trump's administration put the company on a blacklist in May, citing national security concerns. It has asked its allies not to use Huawei equipment, which it says China could exploit for spying