Indian Government Bans 17 Chinese Companies from Tenders, Highlights Security Concerns

Defense News ,India :- In a significant move, the Indian Government has recently prohibited 17 Chinese companies from participating in tenders in the country. The ban extends beyond the companies themselves to include Indian entities that sell products from these companies. The decision comes as a response to concerns about Chinese products entering the Indian market through rebranding and collaborations with Indian partners, potentially compromising the strategic and security interests of India. This article delves into the details of the ban, shedding light on the companies affected and the implications for India's procurement practices.

Background and Introduction

The ban, announced at the end of January, targets a range of Chinese companies, including Xp-pen, Highvision Hikvision, Lenovo, Dahua, Lava, Ottomate, Xolo, Airpro, Grandstream, Wi-Tek, Realtime, Maxhub, Nokia, Domino, Reputer, and Tyco. The government has not only restricted their participation in tenders but also cautioned private companies doing business with the government against utilizing products from these Chinese entities.

Crackdown on Chinese Products in India

This move follows revelations from The Sunday Guardian last year about the usage of Chinese products in government public sector undertakings operating in strategic sectors. The ban is aimed at curbing the influx of Chinese products that attempt to conceal their origin by changing brand names and collaborating with Indian entities. This practice not only impacts India's strategic and security concerns but also benefits the Chinese economy.

Details of the Ban

The official government order dictates the removal of Indian sellers associated with these Chinese brands from the Government e Marketplace (GeM). Consequently, these sellers are disqualified from participating in any bids on GeM. The order also empowers GeM to cancel orders where products from these Chinese companies are identified in the bidding process.

The highest number of banned products, seventy in total, belong to Hangzhou Hikvision Digital Technology Co., Ltd. - a major supplier to Indian government agencies. DNS overseas, a player in the Indian tablet market associated with the Beijing-based Hanvon Ugee Group, has also been delisted from the GeM portal.

Specific Companies and Products Banned

• Lenovo, a Chinese-origin company founded in 1984, has 22 products, including servers, banned. It is reported to have ties with the Chinese military through the Chinese Academy of Sciences (CAS).

•  Zhejiang Dahua Technology Company Limited, specializing in video surveillance equipment, has five products banned.

•  Lava International, despite being perceived as an Indian company, has nineteen products banned. These include smartphones, fans, and tablets, all manufactured in China.

•  Airpro, Grandstream, Wi-Tek, Realtime, Maxhub, Nokia, Domino, Reputer, and Tyco also face product bans.

Exclusion of Certain Companies Raises Questions

Notably, the list does not include entities with significant Chinese investments and control operating in India, such as Huawei, Alcatel Lucent (now owned by Chinese promoters), TvT, Tiandy Technologies, and Uniview. These companies have a substantial presence in India and have engaged with government agencies over an extended period.

Committee Oversight and Future Expansions

A Registration Committee under the Department of Expenditure Order, chaired by Manmeet Kaur Nanda, was formed on August 6, 2020. This committee evaluates applications from countries sharing a land border with India for participation in public procurement. Nanda, now with the Cabinet Secretariat, has overseen this committee, but officials suggest that the current list is not exhaustive. More companies may be added based on ongoing assessments and inputs received.

The Indian Government's ban on 17 Chinese companies from tenders marks a crucial step in safeguarding national security and interests. The focus on GeM and the removal of associated sellers indicate a determination to scrutinize and control the procurement process. As the situation evolves, industry insiders and security experts will closely watch for potential expansions to the list and the inclusion of companies currently absent from the ban. This move underscores India's commitment to securing its strategic sectors from potentially compromised products with origins in China.