Security check onus for Chinese imports on cos.

New Delhi: The government wants to put the onus of first-level security check on technology imports on Indian entities as a long-term solution to the dispute regarding the presence of Chinese companies in the country, especially in the telecom sector.

While the departments concerned, including the ministry of home affairs is working on the plan, representatives of telecom company ZTE met home ministry officials on Tuesday to press the case for what they described as clear rules to do business in India. Chinese envoy to India, Zhang Yan held a separate meeting with home secretary GK Pillai on the issue.

The plans to make equipment importers or the Indian subsidiaries of foreign companies responsible for providing security check will make it more practical for the policing agencies to monitor the imports, given the large and expanding scale of business relationships between the two countries. “When a company is responsible for the first-level checks, it can be taken to court even by a consumer for not adhering to the standards”, said a source.

This is also expected to free the government of its perceived bias against Chinese imports and companies. “The security check should operate on any such deal involving companies from any country,” said the source. This will reduce the level of vulnerability inherent in any economic tie-ups with foreign companies as the Indian company will have to show it has done the due diligence.

While this could make imports costlier, government agencies will be freed from the need to micro-manage joint ventures to check if they cleared security drills.

ZTE chairman and managing director DK Ghosh met home ministry officials for about half an hour while the Chinese envoy spent 45 minutes with Pillai. “We have put forth our issues, and hope for the best,” said Ghosh.

An official release from the home ministry said “certain clarifications had been sought” by them during the meetings. ZTE has plans to establish a manufacturing base in the country while Huawei is expanding its research and development wing at Bangalore. As part of the clarifications, the government is reported to have asked for ownership details of the Chinese companies planning tie-ups with Indian telecom companies. These relate to specific ownership details of both listed and unlisted companies wishing to do business in India as well as certification procedures being used by other countries which access these Chinese goods.

Source : Financial Express