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Friday, May 26, 2006

India's Insecurity Feeling Hurts China-India Business

China and India are two neighbors. The relwtionship between them are improving in recently years, and the two sides vow to enhance the trade and business relationships. But it seems that India government has very strong insecurity sense against China. Is that caused by the war in 1962 in which India was defeated?

Here are some examples:

1. Shenzen Cimac-Tianda Airport Support Ltd's bid for supplying aerobridges for Indian airports was turned down by the Airports Authority of India on security grounds. Even the company's bid was the lowest at Rs 79.10 crore, leaving a single bidder, Spain's ThyssenKrupp, that quoted Rs 189 crore for the same job. (Source). Actually Cimac-Tianda's products have been using in other Indian airports.

2. In 2005, for the second time in the last five years, Indian security agencies have moved to slow Huawei's expansion plans out of concern for India’s strategic telecom network. In 2001, U.S. intelligence sources reportedly tipped off the Indian government about Huawei’s activities here. (Source).

3. In 2006, India will not allow equipment maker Huawei to bid for BSNL's GSM project due to security reasons. (Source). Huawei's products are sold well in Asian, African, European and American countries.

4. India’s Cabinet Committee on Security (CCS) has referred the question of giving security clearance to Hutchison Port Holdings (HPH)’s bid for the Mumbai offshore container terminal to the country’s security advisor M K Narayanan. (Source). HPH is a world top port operator based in Hongkong and has business in all over the world.

Indian government's insecurity sense reaches a ridiculous point. It does not only hurt business of Chinese companies, it also hurt India own business operations.

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