India blocks imports of wireless devices made in China: report | International trade news


India has blocked imports of bluetooth speakers made in China, wireless headphones, smartphones and more: Reuters.

India has maintained approvals to import wifi modules from China for months, pushing companies such as US-based computer manufacturers Dell and HP and Chinese Xiaomi, Oppo, Vivo and Lenovo to delay product launches in a key growing market, two industry sources have told Reuters news agency.

Imports from China of finished electronic devices, such as bluetooth speakers, wireless headphones, smartphones, smart watches and laptops, are slowing down, sources said.

Wing, Wireless Planning and Coordination (WPC) Wing, India’s Ministry of Communications has withheld approval since at least November, according to sources, who were familiar with the pressure efforts of companies requesting authorization.

One source said more than 80 such applications from US, Chinese and Korean companies have been pending from the WPC. Even applications from some Indian companies, which provide some finished products from China, are pending approval from the WPC, the sources added.

Dell, HP, Xiaomi, Oppo, Vivo and Lenovo did not respond to requests for comment.

India’s communications ministry also did not respond to a request for comment. Both sources said the government had yet to respond to representations from industry pressure groups and individual companies.

India’s tough stance against Chinese imports comes amid Prime Minister Narendra Modi’s call for greater economic self-sufficiency.

Its nationalist policies have helped drive the growth of smartphone assembly in the South Asian nation, and sources believe the government’s intention is to persuade companies to locate more of their electronic device production in the country. ‘India.

“The government’s idea is to push companies to manufacture these products in India,” one source said.

India has become the second largest mobile equipment manufacturer in the world [File: Anindito Mukherjee/Bloomberg]

“But technology companies are caught in a difficult situation: making India would mean significant investments and a long wait for returns, on the other hand, the government-imposed barrier to imports means a possible loss of revenue.” .

India had previously allowed companies to self-declare wireless equipment, which facilitated imports, but the new rules in March 2019 forced companies to seek government approval.

While India’s market and export potential have made it the world’s second-largest mobile equipment maker, technology analysts and industry experts say it is not yet the size or size of the company. ‘scale for companies to invest heavily in the manufacture of IT products and smart devices to carry.

Suspicious of Chinese technology

The long delay in WPC approvals also underscores India’s strategy to reduce China’s influence in its technology economy, especially after a border clash with Beijing last year, despite tensions s ‘have reduced since then.

This week, the Modi government omitted Chinese electronics maker Huawei from a list of participants in 5G mobile telecommunications testing, even though it allowed European and South Korean rivals.

And once the deployment of 5G in India begins, New Delhi is likely to prevent mobile operators from using Huawei’s telecommunications equipment, Reuters has previously reported.

U.S. companies Apple, Cisco and Dell were caught last year by India’s border tensions with China, as Indian ports maintained imports of their products from China.

In another example, reported by Reuters late last year, India’s tight control over quality clearances for electronic products from China slowed imports of an Apple iPhone model.

Now that companies have obtained security clearances from India’s quality control agency, obtaining WPC approval has become the main hurdle for importing electronic devices from China.

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