India’s Economic Times cites sources who claim that Chinese telecoms firm and phone-maker ZTE (HKG:0763; SHE:000063) is shutting down its research and development (R&D) operations in India. In addition, ZTE is thought to be aiming to cut costs amid falling telecoms revenues in the country by “sharply scaling down its services business.”
The paper suggests this is not a backlash against ZTE (and Huawei) per se, and is due to “reduced networks gear spending by mobile phone companies” across India.
But as we noted back in November, the Indian government might follow the US in launching a national security investigation into Huawei’s and ZTE’s telecoms services.
(Source: Economic Times)
