Huawei, ZTE seek to overcome Chinese equipment ban

ZTE Corp, China's second largest telecommunications equipment maker, said on Wednesday it could consider setting up a factory in India to resolve security concerns of New Delhi.

At the same time, Chinese rival Huawei Technologies too said it was considering setting up factories in India to allay New Delhi's security fears over their its  equipment. Both companies have been blocked from selling equipment in India.

The Chinese telecom majors haven't got orders from Indian telecom companies for almost the last four months, since Indian intelligence agencies recommended that no orders be given to Chinese telecom equipment makers.

ZTE now wants to start a dialogue with the Indian government on the issue and even shift some of its manufacturing to India as a confidence booster.

For ZTE, the Indian market accounts for almost 9 per cent of its global revenue, the largest outside China. It is therefore not surprising that the Chinese embassy has also stepped in seeking clarity from the government.

Meanwhile, the Chinese companies are hoping that given their readiness to pass every test proposed by the Indian security services and dialogue between the two governments the whole issue can be resolved quickly.

Huawei Technologies meanwhile said the government ban would not affect the firm's plans to grow its research and development centre in Bangalore.