Quality Products International

India bans phone imports from China

by on Apr.30, 2010, under Asia Business

Quality Product International has spoken first hand to some phone suppliers currently holding stock of phones that were destined for India, but now have an uncertain future.

The industry typically relies on high volume and fast turn-around. Many factories only hold a few days stock of components, normally shipping partial orders a few times per week.

The stranded stock ties up working capital and storage space.

On the other hand, many Indian customers would have paid deposits, which they have now forfeited as they are not taking delivery of the stock.

While the QPI team has been involved in supplying the Indian market with Telco products in the past, we have been fortunate not to get caught in this as most of our current business has been in Africa.

None the less, it will be interesting to see who is impacted most heavily by the Indian ban!

India’s Department of Telecommunications has issued a blanket ban on imports of telecoms equipment from China, in a move that will hurt Huawei and ZTE, along with the rest of the Chinese telecoms industry.

Interestingly, the reason for the ban isn’t competition issues, or nationalism, but national security – India is concerned that telecoms equipment from China could contain spyware and malware that’d allow Chinese spies access to Indian telecoms networks. The two countries have a strained relationship following many clashes over the past century, most notably in 1962 when the Sino-Indian war broke out.

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