U.S. formalizes ban on govt contracts to China's Huawei, others

A potential row over Huawei could revive tensions in the broader India and China relationship just as the two sides have been making high-level efforts to ensure their long-standing territorial disputes do not escalate

Meanwhile, a US Congressman has alleged that China was "blackmailing" India into using Huawei for its 5G infrastructure. According to India's Foreign Ministry, New Delhi and Washington could leverage their respective abilities to work together on 5G infrastructure.

Asked whether China was anxious that India would prevent Huawei from taking part in 5G trials, Chinese Foreign Ministry spokesperson Hua Chunying said Huawei has been doing business for a long time in India and made remarkable contribution to India's economic and social development.

Responding to the Reuters story, U.S. Congressman Jim Banks, an Indiana Republican, slammed the Chinese language Communist Celebration, saying in a tweet that it was "sturdy-arming" worldwide locations into "surveillance and espionage".

RSS economic wing head Ashwini Mahajan wrote to Prime Minister Narendra Modi last week that Huawei Technologies can not be trusted as the company is facing allegations that it uses its equipments for spying on its users.

Indian firms have a much smaller presence in China than different main economies. But firms including Infosys, TCS, Dr Reddy's Laboratories Reliance Industries and Mahindra & Mahindra have a foothold there in manufacturing, health care, financial services and outsourcing.

A prominent right-wing group called Hindu Nationalist, which has close ties to Indian Prime Minister Narendra Modi, has been a longtime vocal critic of China, and promotes self-reliance as the main economic model in the country.

Huawei said it would challenge the move in federal court.

The interior ministry, which is responsible for the security of the infrastructure, had issued no directive to curtail Huawei's entry, the telecoms official said.

Now playing: Watch this: What is going on between Huawei and the US?

"We can't simply reject them just because they are Chinese", said telecom official.

That ban, which has been suspended until mid-August, could prevent Huawei from getting key hardware and software including smartphone chips and key elements of the Google Android operating system.

Huawei was the world's number two smartphone producer past year, ahead of Apple and behind South Korea's Samsung, as well as the largest provider of telecom networking equipment, but the firm has emerged as a key bone of contention in the wider China-US trade war.

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