India expands scope of economic retaliation against China – bars Chinese firms from bidding for govt projects

The minister said all equipment imported for use in the power supply system would be tested in the country to check for embedded malware, Trojans or other cyber threats.

Expanding the scope of New Delhi’s economic retaliation against China, which has shown unwarranted aggression along the border recently, the government on Thursday barred ‘unregistered’ firms from countries sharing land border with India from bidding for virtually all kinds of government projects and service contracts, including those floated by PSUs, autonomous bodies and state governments.

The step, taken in the interest of national security, will make it extremely difficult for China to expand its economic footprint in India.  “As per the Order any bidder from such countries sharing a land border with India will be eligible to bid in any procurement whether of goods, services (including consultancy services and non-consultancy services) or works (including turnkey projects) only if the bidder is registered with the Competent Authority (designated panel in the industry ministry),” the government said in a statement.

Also, political and security clearance from the ministries of external and home affairs respectively will be necessary for the registration. India has taken several steps recently which could be construed as economic retaliation against China including stringent Customs scrutiny and banning of assorted Chinese apps in the wake of a short-lived, bloody border stand-off. Power minister RK Singh had said earlier a complete ban would be in place forthwith on import of power equipment from the neighbouring country.

The minister said all equipment imported for use in the power supply system would be tested in the country to check for embedded malware, Trojans or other cyber threats.

India is considering hardening a crackdown on sub-standard and “non-essential” imports across several segments, ranging from chemicals, pharmaceuticals and electrical machinery to furniture, toys and steel, again a move that will hit China primarily.