According to the Indian Economic Times, Chinese telecom equipment suppliers Huawei and ZTE are considering manufacturing equipment in India to avoid the 20% basic tariff imposed by the Indian government last year. Swedish Ericsson plans to increase local investment in India to increase exports.

“We are carefully studying the possibility of manufacturing locally. This is part of our discussion with the Indian authorities.” Xiao Ming, president of ZTE Global Sales, told the Economic Times. “This (a discussion) is still at a very early stage. We see the Indian government’s very positive ambitions, which is why we seriously consider the possibility of manufacturing locally.” The executive said that if the company can With the cost advantage of the measures, ZTE hopes to transfer many of its factories to India.

Huawei is developing a plan to resume the production of telecommunications equipment and enterprise products locally. Last year, due to sluggish demand and other challenges, Huawei stopped production in its special economic zone. The company imports to meet the needs of Indian customers.

“We are considering building a new plant for the carrier business and corporate business. We are working closely with the headquarters to prepare the new plant. We recently met some people in Chennai. We understand the Make in India project.” Huawei India CEO Jay Chen told the Economic Times.

At present, Huawei and ZTE are facing international review of 5G equipment security. India has not yet decided to allow the two companies to participate in the upcoming 5G trial.

image source: The Indian Economic Times.

James Wu, president of Huawei Southeast Asia, told the Economic Times: “We understand the importance of local manufacturing investment to India.”

In the mobile phone business, Huawei recently expanded its manufacturing capabilities through cooperation with Foxconn. The company has partnered with Flex to manufacture mobile phones in India.

European suppliers Nokia and Ericsson both have manufacturing facilities in India. However, they still need to bear a 10% tariff on parts and components in order to manufacture telecommunications products locally.

According to reports, Ericsson plans to expand its manufacturing capabilities in India to export products to more countries. Ericsson’s factory in Pana Chakan was established in 2016.