Afaik, Chinese military sabotaged BSNL's base station using HUAWEI's equipment. After such a major security breach, these chinese companies shouldnt have been allowed to flourish unchecked.
ZTE and HUAWEI have been banned in USA long ago.
It was pretty surprising that these brands were allowed here. If we do not have an active/capable dept for detecting the covert operations/capabilities of those firms, they should have taken cue from the other govts.
Then we should have never allowed Chinese equipment specially for DRDO and defense / armed forces' projects from day 1. We have never been chummy with China since the Nehru-fiasco happened in the 60's and we let in Tibetans by the boat-load. US of A banning anything in the world on national soil is of not importance, cause they can industriously and ingeniously harness their own acumen to do the same, or beckon their vassal state, Israel to supply the same.
It is not surprising that Chinese companies were allowed to operate with a stigma (I would call it paranoia) attached of: undermining and covert/clandestine operational frameworks being set; because India does not care. There is absolutely no governance, proactive approach, and controllership for these matters, or matter of fact any aspect which is operated by the government. India is a reactive nation. IAF (and I would call them dumb-f**** for this), should have raised this flag eons ago when rapid advancements were being made and poster boys like Bharti Mittal (and A.Raja types), along with our economic gurus -were- harping India as the fastest telecommunications growth entity. We could do nothing to the Union Carbide which was livid and proven for misconduct and malpractices, what do you aspect we can do for a phenomena seeded from the cloak-and-dagger. You know what India is: If you have read MAD comics, they always had a section in between, SPY vs. SPY, we are the one who is always screwed over, but realize is after it is done with....!