India is set to suspend testing of the Huawei and ZTE technology companies in the installation of the 5G network, because of the risks to the security of its when these companies have links to the Chinese Communist Party (CCP).

India modified the rules for investment in the innovative network on July 23, and these would restrict Huawei and ZTE. The information was provided by sources who preferred to remain anonymous, adding that the official announcement would be made in a couple of weeks, according to the South China Morning Post (SCMP) on Aug. 14. 

India will be joining the United States, United Kingdom, Australia, and other nations that prefer to avoid the involvement of companies that transfer sensitive data from their governments to the CCP.

While earlier this year Huawei and ZTE were expected to invest $4 billion in India’s 5G Internet network infrastructure, according to the world’s leading market intelligence provider, International Data Corporation (IDC), this process would be suspended.

“Telecom infrastructure has become part of national security assets and nations are looking at controlling and regulating them just like they do power and water,” said Nikhil Batra, IDC’s Sydney-based analyst, according to SCMP.

As a technology alternative for India, billionaire Mukesh Ambani announced on July 15 that his company Jio Infocomm will apply proprietary technology to deploy the 5G network in his country, which it would then export.

“This Made-in-India 5G solution will be ready for trials as soon as the 5G spectrum is available and can be ready for field deployment next year. And because of Jio’s converged, all-IP network architecture, we can easily upgrade our 4G network to 5G,” Ambani announced according to The Week. 

Ambani’s Jio solution would mitigate the economic impact of excluding companies linked to the CCP, which have already generated a high dependency on equipment in 4G networks, estimated at 35 percent of the total network.

The Indian government’s decision is likely to have been influenced by the CCP’s border attacks in which at least 20 Indian soldiers and an unknown number of Chinese lost their lives in early May.