Indian Government Restricts PRC Manufacturers From Public Projects
In a move that mirrors the U.S. government’s ban on Dahua and Hikvision products, the Indian government has restricted PRC manufacturers such as Dahua and Hikvision from bidding on Indian government projects.
Inside this note, we examine:
- Rising Tensions Between India and the PRC
- Amendments to General Financial Rules 2017
- Impact on PRC Manufacturers
- Dahua: No Comment
- Hikvision: No Comment
- More Bans Forthcoming?
Rising ******** ******* ***** *** *** ***
***** ******** ******* ***** *** *** PRC **** **** **** **** **** a *******, ******** ******** ****** ** ** mid-June, **** ******* ***** ******* ****** *** *** servicemen*** ** *** ****** ** ** Indian ********, ** **** ** * still-unconfirmed ****** ** *** **********.
** **** *,**** ******** * *************** *** ***** ********** ***** ****** Hikvision ** *****, ***** ****** ******* as ***** ********* ***** ******* *******, or ***** *********.
Amendments ** ******* ********* ***** ****
** **** **,*****'* ******* ***************** ******** *******, ** **********, ** its ******* ********* ***** **** (*** 2017), ***** ****** ******* ** ****** projects.
** **** ** *** ******* ********'* move, "******* **** ********* ***** ***** a **** ****** **** *****" (*.*.**********, ******, *****, *****, ********, *** the ***) **** **** ** ******** **** the **************** *** ********* ** ******** *** Internal *****(*****) *** ****** "********* *** ******** clearance **** *** ********** ** ******** and **** *******" ****** ***** ******** to ***. ********* ******* ********'* **** ** ***** release** *** ************ ***** ** ***** that *** **** ** ****** ** national ******** ********.
*** ********** ** ***** ***** ******* the ******* ********* ***** **** ** enable ********** **restrictions ** ******* **** ********* ***** ***** * **** ****** **** ***** ** ******* ** ******* ** *****, or matters directly or indirectly related thereto including national security. The Department of Expenditure has, under the said Rules, issued a detailed Order on public procurement to strengthen the defence of India and national security. [emphasis added]
*** **** **** ** ****** ******* Ministry ***** ******** *** ***************.
Impact ** *** *************
*** ********** ** *** ****, ********* immediately ** ** ***** *********** ** July **, **** * ******, ******* impact ** **** ***** ********* *** Dahua's ****** **********, ***** ********** ***** Private ******* (***** *****).
******** *, ***** ***, ****** *** of *** ******* ********'* ***** ******** GFR **** ****** "****** **** * country ***** ****** * **** ****** with *****" ******* ** * ***** degree ** **************.
***. "****** **** * ******* ***** shares * **** ****** **** *****" for *** ******* ** **** ***** means: -
*. ** ****** ************, *********** ** registered ** **** * *******; **
*.A ********** ** ** ****** ************, *********** ** ********** ** **** * *******; or
*.An ****** ************* ********** ******* ******** ************, *********** ** ********** ** **** * *******; or
*.An ****** ***** ; or
*.An ****** (** *****) ***** ** **** ** ******; or
*. * ******* ****** *** ** a ******* ** **** * *******; or
*. * ********** ** ***** ******* where *** ****** ** *** ********** or ***** ******* ***** ***** *** of *** *****[.] [******** *****]
***** ***** ***** ** ******* ***** Clause **** *****, ** ******** ********* databases [*],[*],[*],[*],[*],[*] **** ** ** ***** ********** in *** ****** ***** *********** * "********** ** ******* *******."
***** *********, ** *** ***** ****, would ** ******* ** ******* **** and **** *****, ** ******** ********* Digital ********** **., ***., *********'* ***-********** parent *******, ********* ** *** **** Annual ****** * **-******* ****** ******** in ***** ********* (*** *.***, ***. ******** ** ***** ********). *** **** ********* ****** ****** also **** ** ** ***** **** Hikvision ** ********** ********** ******* *********** ********** *****, * ***, *****-***** ********** (*** p.***).
*** ******** *********** ***** ** *** Company [******** ********* ******* ********** **., Ltd.] ** ***** *********** ********** ***** Co., ***. ("****").
****** **** ***** ****** *** "****** (or *****) *****" **** ***** ***** or ***** ********* ***** ******* ** bid *** ****** ******** ** ***** behalf *** ************** *** ******* ******* pursuant ** *** *****:
**. ** ***** *********, ********* ******* contracts, *********** ***** *** ** ******* to ***-******** ***** ** *** ********** from * ******* ***** ****** * land ****** **** ***** ****** **** contractor ** ********** **** *** ********* Authority. *** ********** ** "********** **** a ******* ***** ****** * **** border **** *****" ***** ** ** in ********* * ***** [****** ** the **** **** ***** ***** ** Annexure *, ***** ***, ****** ***]. This ***** *** ***** ** ***-********* already ******* ** ** ****** *** date ** **** *****.
***** *** ******* ********'* **** ** order **** *** *********** *** ***** India ** ***** ********* **** ******* on ****** *******, **** ********* *** now ******** ** ******* * ***** review *** ****** ****** ********** ********* and ******** ********** ***** ** ***** allowed ** *** ** ******* ****** projects.
** ***** ** *** ******* ***********, with*** ** *****'* **** ****** ********* journalists********** ******* [*] [*] ** **** ** *** "******" posed ** ********* *** *** *****"******* *****" ******** ******* ** ***** of *******, ** ** ******** **** ***** India ** ***** *********, ***** ** the ************ **** ******* ** *****'* **************, **** ** **** ** *** again *** ******** ******** *******, **** as *********** ******* **** ** ***** *** tender **** *** ****** ********** ** too ********* ** ***** *********.
Dahua: ** *******
**** ******* *** ** **** ***** HQ *** ***** *****; *******, ******* responded ** *** ******** *** *******.
Hikvision: ** *******
**** ******* *** ** **** ********* and ***** *********. * ********* ************ declined ** ******* ***** ***** ********* did *** ******* ** ****'* ******* for *******.
More ************ ***********?
***** *** *.*. *** ***** ****** the **** ********* ** **** ***** such ******** ****** ******* *** ***** PRC *************,****** ** *********** **** ********* ******* over ******************* ********** ********** ******** **** *********** Hikvision ********.
***********, ** *** ******, ***** ** no ********** **** *** ************* **** being ********** ** *********** ** *********, Canada, ******, ** ***** ******* ** the **** ****** ** ** *** U.S. *** *****.
UPDATE: ***** ****** ********** ***** ************ ******* ***** ***** *** ***** ********* "**** *******" *** "********** *********** *** ****** *********"
**** *********** ** *****-***** ********** ** Dahua ***** *** ***** *********, *** had *** ********* ** ***.
****: ** *** ******* **** *** amendments ** *** **** **** ****** Prama ********* *** ***** *****? ** so, ***?
**********: **********, **** ***** ** ***** to ** *** ***** **** ******* favouring ****** ****** *** **** **** [a] ******* ***** ** [***] **** in ***** ********** ** [***] ********** of *****. ** *** [*] **** awaited *** ****-****** *********, ***** **** change *** ****** ** [***] **** industry ** *****. [***] ********** *** also ******* ***** ******** ************ ** come ******* *** **** ***** *********** on ********* ********. *** *** ** TV *** ** ****** ***., ** [an] ******* ** ****. ***** *** serious **********[*] ***** ** ** *** government ******* ** [***] **** **** also, ***** **** *********** **** *** further ********** ** ** *** ******* import[s] **** *****, ****** ******* ** local *************. ** ****** **** ******* brands...who **** ******* *********** ********** ***** and *** ******** ******** **** [***] governmentt ****, ** ******* [*] ***** ecosystem ** ********** *** ****** *****, to ********** ***** *************. ******* ***** on ***** *&* *** ******* *********** is ******* ******** **** [***] **********, with ****** ************* ****** *******.
****: ** *** ******* **** *** amendments ** *** **** **** ****** opportunities *** ****** *********? ** **, why?
**********: ** ******* ******, [***] ********* will ****** ********** *********** *** ****** companies, *** *** ** ******** *** Chinese ********* ** ***** ****** ****, where **** **** ***** * *** preference **** ****** ** ******** ******* and ***** *** ******** ********* ** scale, **** **** **** ** ******* in ******** ******* ***.
****: **** ****** ******* (*.*. ****** Electronics ******* (***), *** ******** ********* cameras ** ***** ***** **** ******) still ** **** ** ******* ***** India *** ***** ********* *******/******** ** their **** *** ****** ******* (******* GEMs ** *********)?
**********: ****** ******* **** ***, ****** will ***** ** ***** **** ********* or ***** **** ** *******, ** BEL *** ** **** * *** of ****** *** ********* ***** **** Delhi **** ******. ** ********** ***** working, ***** * ****** ******* *******. That's ***, *** ***** ** ** Delhi **** ******* ** *.* ***** [140,000] *******, *** **** ***** **** CP **** *** *** ****. ********* other *** ********** ******* **** ********, Delhi ****** *******, ****/ ***** ***** Cities ***., *** ** ******* **** CP **** ****.
**** ** **** ******** ******* ****
**** ***** **** ******* **** ** ***** ** ******* video ************ *************** ** *****, **** ** *** consider ****?
** ***** ** '********' *** ********** by ***** **** ***** *** ***, for *******, **** ******** ********* **** this *********. *******, * **** ***** seen *** ***** ** ********* ********* speak *** ******* ******** ****** ** China ******** *** *****, **, **, Canada ***** ************ *********.
*******, * **** ***** **** *** Dahua ** ********* ********* ***** *** against ******** ****** ** ***** ******** out *****, **, **, ****** ***** surveillance *********.
** ****** **** ***** **** ** keep *** *** *** *** *** arrested .... ** **** ** *****. For ** **** ** "****** ***"
**** ** *** **** ** *** industry..... ** ** *** *** *** to **** ********* **** ****** :)
**** *** *** ******* ** *** John, *** *** **** ************ **** many ***** ** **********, * ***** IPVM ** ******** *** **** ** this ******. **** ** *******.
* ***** **** ** ******** *** much ** **** ******. **** ** opinion.
********** ****** *** **** ********* ******** on *** **** ** ***** ** this *****.
** ***** ** ****, ** *** this ** ** ***** ** ******* and ****** - *** *** *** spent **** ** *** **** ****** blocking *** ******* *********, **** *** unjust *** ******** *** ******* ** is *** ***** ***** ** **.
***, **** ***********, * *** ** people ** *** ******** *** ******* about ****, ** *****, *** ****, there *** ****** **** *** ************** think **** ** *** ****, *******, there ** ********.
******: **** ****** *** **** ******* to ******* *** ********* *** ******** of ** *****-***** ********** ** ***** India *** ***** *********.
**, *** ********* ****** **** ** from ** **** (****** ********). *** is ******* *** *** **** ****-** around ******* ******** **** ** ***** etc? * ******* **** ****** ***** to *** **** ****** *** (** they *** *** *******).
***** *** ** **** *** ****** the **** ** **** *** **** and *** *********.
****** **** **** ** ***** *** to ** *********@****.***** *** **** ******** ** ****** video ************ ************* *** ***** ** interested ** ******** ** ****. *** focus ** ** **** ****** **** is ********* *** ************* ******** *** I ** ****** ******* ** ******* with ******** *************, ********** ************* *** have **** ** ********** ******/***** *********** for ********.
****, *** ** ******* **** ****** is ***** ******* ****** ** ***** is **********. **** ******* * ********* in ********, *** *** ***** ********, one *** **
*'* ** **** **** ***** ********* are ******* *****. **** **** ***** a **** **** ** ***** ****** and ***** *** **** ******, ** they ****** *** *** ** *** ass.
**** **** *** ***** *** * matter ** '******* & ******' :)
** ******* *** *** ****** ** the ****** ******** ******** *** **** 15 *****, *** **** *** **** for ****** ********* ** ***** *** works **** ******* **** *** ****. on ****** ********, **** *** ** comments -
**** *** ******* ** ** **** HikVision ** *****. * *** *** how *** ******** **** *** ********** but ******** * *** *** ****** this **** ****.
* **** ** *** *** **** not ****** ********** *** ********** (* do *** ***** *** ***** *** may *** ** **** ****** **** the ******* ** **** **** '*********** appeasing' ******** ** **** ****/**** *************, etc. ** *****).
********* ** *** ******: (*** ***** highlighted)
***. "********** * ******* ***** ****** * land ****** **** *****" *** *** purpose ** **** ***** *****: -
*. ******** ************, *********** ** ************ **** * *******; **
*.************* ** ****** ************, *********** ** registered ** **** * *******; **
*. ** ****** ****************************** ******** ************, *********** ** ********** in **** * *******; **
*. ** ****** *****beneficial ***** ** ******** ** **** * *******; or
*. ** ****** (** *****) ***** of **** ** ******; **
*. * ******* ****** *** ** a ******* ** **** * *******; or
*. * ********** ** ***** ******* whereany ****** ** *** ************ ***** ******* ***** ***** *** of *** *****[.] [******** *****]
**** ********* ***** - *********/*****/******** (***) or *********/*****/******** (*****) ****** ******** *** for * ****** ******* ** *****, nor **** *** ** * **** of *** **********/** **** **** *** a ****** ******* ** *****.
***** **** - **** ***** **. OEM's *** ***** *** ******* ** public ******** ** *****. ****** ******** are ******* *** ** ***** ********* who ** ******* **** *** *** qualification ************ (*.*. ****** *** *****, Johnson *******, *******, ***.), **** **** are ******* * *******, **** ** with *** *** *** ***** **** the ******** ******** *** **** ***** the ***** ******* ***** *********** *** does *** ************. *** *** ** ALWAYS ** *** **********. *** * customer *** **** *** *********** ** lets *** ********* ** ***** *** offered *** **** ******* ******* ** the **** **** ***** **** (****, Bosch, ************, *****, ***.) **** **** no ***** ***** ** *** ***** of ********* ** *****.
** ***** ** ***** ** ****** published ** ** *** ******** - an *** *** ****** ** **, he *** ******** ** *** ********* worded ** ** **** ******* * others **** ******* - ** **** win.
* **** **** **** ***** ******** makes *** - *********, *****, **** & *****, ***** **** ** **** who's ***** ** *** **** ***.
* **** **** **** ***** *** mentioned ** *** *** **** *** 'Country ** ****** ****** ** ***** or ******' *** ***** *** ********* customers *** ****** ********** **** **** want, *** ******** ***** * ********** to ***** *** **** ** ***** an *** ***** **** *********/*****.
*** *******
While *** ******* ********'* **** ** ***** **** *** *********** *** ***** ***** ** ***** ********* **** ******* ** ****** *******,
***** ** *** ********* **** ** mention '**** *********' - *** **** I **** ** ********.
**** ******* **** ********
In ***** ** *** ******* ***********, ****
'*** ** *****'* **** ****** ********* journalists' - ***. ***. ** *** believe ********** *** ****, ********** ** his *** ******** *******. ******** *** our *********** *** **** ******** ***** that. *** ****** ***** ** ****** be ********* *** ** ***** *** 'benefit *** ****' **** -** **** ******* *** ******** ** security *** ************ ******** - **************
*** ********* ******* **** ** **** or ****** (******* ****** ************ ** CCTV) **** *** **** ********* (** even **** *******) ** ***** ********* in ******* ********* **** ** *** case - *** ** *** ******* that ** *** *******.
************* *** **** ******* **** *** 'Made ** *****' ** *** **** even ***** ** *** *******, ********, experience (********* ********) ** *** ******** players ** *** ******. ***** ******** are ******* ****** *** ****, ***** retail, *** ******* **** ** ***** ($50 ** $*** *****) *** *** would *** ********* ******* **** *** an ******* ** ***** (*** - maybe ** *** *** ****** *** still * **** **** **** *****).
** ******* **** *** '**** *******' and *** *** ***** *** ********' but ** ********* & ***** ******.
***** *** * ****** ****** ************ integrity **** ****.
********************************************************************************************
*.* : **** ********* ** ******** for *** ***** **** ******** ***** bidders **** *** *********. ***** **** 2 ***** ******** ******* ** **** but ********** ********* *** ******* *** retendered.
** *** ******* ***** **** *** will ******* -
***** *** ***** ***** ****** ****** procurements **** ********* ******* ****-******* **** India, *** ****** ****exemptions ** ******* ********* **** ***** ****** ***** ** ******.********* ** ********* ********* *****, **** could ** ********* **** ** ***** and ******. ***, *** ************* *** not ******* ***** ** *** ********** country ** ***** ** *********.
True ** ***** ****.
*** ****** *** ****** *** ******** products ** ****** *** ********, **** cant ********** **** ******* ********** *** products **** ***.
* ******* ******** *** **** ******** gov ******** ******, *** *** **** what ** *** ********* ***.
******: *** ****** **** *** ******* removal ** *** ********* ***** ************ systems, ********* **** ** ******** **** non-Chinese ****** ********, ********* ** ** "internal *************"******** ** *** ****, *****'*************** ********. *** ****, ******** ** the ******** ** *******'*********** ******* *****, ****** **** **** *********** ******** are *** ******:
"**** **** (****) ***** ** ******* programmed ** ***** ******* ** ******** hardware *** **-** ** ***-***** ************, or ****** *********** ** *********** **** the ******/***** ** *** **** *** other ************ *******," *** **** ******.
*** **** **** **** ** *** cameras ******* *****'***** *-****** (***) ***** *** "******* Chinese ****** ******** **** *** ****** as *** *** ********** ** *** Department ** ********* ** ******** *** internal ***** (*****)", *** *** ****.
*** **** ***** **** ********* ***** markets "**** ** *****" (*** ***** ***** *******) *** ********* ** *** ********** controlled:
*** ******* ** ***** ******* ******* are ******** ** *** ******* ****, however, ***** ******** *** ******** ** 'Made ** *****', *** ****** ****** [...]*** ** *** ****** ******* ** surveillance ******* ** *********, ***** *** 41 *** **** ******* ********** ******* and ** ** ********* ** ***** through ** ****** *******'* *************
***** *********, *********'* ***** ******, ** 58-percent ******** ***** ** ********* ******, per*********'* *** ****** ******:
**** ** *** ***** *** ******* of *** ******* ** ******** ** the *********** **** **** ** **** politics ******* ****. ***** ** *** market *** **** *** ** **** a ***** ** ***** ************* **** PRC