The One Behind It All Chapter 33

In the 2003 Indian CDMA450 tender, the two companies were at odds with each other, and in the end they had to decide the winner based on "lower price". As a result, both parties suffered varying degrees of losses. In 2005, during the bidding process in Nepal, the two companies fought fiercely. In the end, ZTE won a 1 million-line GSM network construction contract for US$3.9 million, which was really below its capital. When will this fighting and killing end?

In recent years, taking advantage of the opportunity of India's telecom network upgrades, ZTE and Huawei have continued to gain ground with their price advantages. By 2008, the two companies' sales in India had exceeded US$1 billion, and together they had captured 1% of the Indian telecom equipment market share. /3. As both developing countries, India has always regarded China as a direct or indirect competitor. The expansion of ZTE and Huawei in India has obviously put pressure on India.

Subsequently, India picked up the "anti-dumping" stick commonly used by the West and hit the two companies.

On December 8, 2009, Indian Customs imposed temporary anti-dumping duties on Synchronous Digital Transmission Equipment (SDH) originating in China. The tax rate is calculated based on the product import price (CIF). The anti-dumping tax imposed on Shanghai Bell is 29%, Huawei is 50%, and ZTE is even taxed at a heavy tax of 236%.

What is concerning is that there is a huge difference in the dumping margins determined by India against ZTE and Huawei. The former is 236% and the latter is 50%. Huawei's response results are significantly better than ZTE's. Neither of them has obtained market economy status, and they are both Shenzhen enterprises. Their labor costs and management levels are basically the same, but the tax rates are so different. What's the secret?