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India-China face-off: Chinese companies may lose railways' contract, other businesses in country

Chinese companies are likely to face the aftermath of the India-China border face-off and may lose business in India as the country prepare to punish China for its action at the Line of Control (LAC).

India TV Business Desk India TV Business Desk
New Delhi Updated on: June 18, 2020 11:06 IST
India China border dispute, ladakh, chinese companies, Signalling
Image Source : FILE PHOTO

Chinese companies may lose business in India after Indo-China border face off.

Chinese companies are likely to face the aftermath of the India-China border face-off and may lose business in India as the country prepare to punish China for its action at the Line of Control (LAC). Chinese companies dealing in telecommunications, railway equipment may face the heat of the Indian aggression.

One such firm whose business is likely to be impacted in India is China Railway Signal and Communication (CRSC) corporation. The company excels in railway signaling and awarded a contract in 2016 to install signals in more than 400 km of railway lines, according to The Indian Express.

In anothe development, The Telecom Ministry Wednesday ordered BSNL, MTNL and other private companies to ban all Chinese deals and equipment. They have been asked to avoid Chinese equipment in upgradation. The decision by the Telecom ministry could play a major role in the 4G upgradation purchases by its subsidiaries.

The government service providers have been asked to change conditions in such a way that Chinese companies aren't able participate in the tender process. The companies have been asked to cancel all previous tenders for telecom equipment. Directives will also be issued for private mobile service providers to rule out use of any existing Chinese equipment, and ban any new purchase.

The move comes amid anger in the country after killing of 20 Indian soldiers at the LAC in Galwan Valley in Eastern Ladakh on Monday night. The relations between India and China have further soured after the incident this week. Anger has been simmering in the country ever since, with many calling for boycott of Chinese products and apps.

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