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India's plan to ban Chinese firms will backfire due to cyber threat: Report

Such a move would also cause losses to companies from China

Press Trust of India  |  Beijing 

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India's plans to ban due to concerns over cyber-attacks could backfire on even though the move would cause losses to from China, a report in a state-run daily said today.

"India's reported move to block Chinese in the power sector seems to be new evidence of the country's overly suspicious attitude toward China, but this could backfire given that is still plagued by electricity shortages and unstable supply," an article in the Global Times said today.

The article was commenting on the remarks by Indian Electrical & Electronics Manufacturers' Association Director General Sunil Misra that ban on Chinese equipment would protect "from cyber-attacks because the power sector is increasingly software driven with intelligent technology and control systems being used."

Referring to criticism that does not allow for overseas investment in its electricity grid, the article said, "the reciprocity argument is unreasonably idealistic and doesn't make any sense at all. Even if allowed overseas investment in its power sector, could Indian power really make it into the Chinese market given their lack of development?"

For a long time, Indian power have been calling for a complete ban on Chinese in the domestic power sector, citing the threat to national security, it said.

"Of course, such a prohibition, if it became real, would cause losses for Chinese But it is totally unrealistic and inefficient for a country that relies heavily on foreign technology and equipment due to its own underdeveloped power sector, because it would be hard and costly for to seek substitutes for Chinese products," it said.

"At present, Chinese are the major suppliers of power generation equipment in India, accounting for about 40 per cent of the traditional power equipment market, according to media reports. As such, India's boycott of Chinese equipment would be at the cost of its electricity infrastructure development, eventually making its people the biggest losers," it added.

First Published: Thu, May 25 2017. 13:59 IST