ZTE in Dialogue with Indian Firms over Tech and Design Transfer

ZTE, a Chinese government-owned telecom network provider, is in talks with Indian companies about transferring technology and designs and forming a joint venture. The move comes as the company prepares to halt operations due to the Indian government's ongoing security concerns.

Apart from ZTE, Huawei is under fire from the Indian government due to border tensions between the two Asian countries. Nonetheless, ZTE believes that having an Indian partner will help bring the "critical trust factor" into its operations, allowing it to not only service existing telecom and network companies, but also gain new business.

“ZTE has begun conversations with some credible Indian manufacturers who it is looking to partner with, through a joint venture, for telecom and network business. The company is ready to transfer technology, engage in research and development and design, while the Indian partner would need to make investments for the manufacturing,” sources said.

Conversations with some of India's top contract manufacturers have already begun and are in the early stages.

I may or may not become a joint venture, the source added.

Both Huawei and ZTE, which had a significant telecom network and equipment presence in India, have been pushed to the margins. Given the threat of espionage and cyber attacks, the Indian government, like many other Western countries, is seeking to allow only gear from 'trusted' locations.