India wants to require foreign suppliers to disclose confidential programming codes for cell phone equipment delivered to the Indian government but has put the demand on hold due to opposition from the companies, industry sources said Thursday.
The Indian government cited national security as the reason for issuing a notice for the disclosure.
Japanese, U.S. and European manufacturers strongly oppose the move because they are worried their technological information will be stolen, the sources said.
India put a freeze on the new requirement because of the opposition, the sources said.
The Ministry of Economy, Trade and Industry notes difficulties in claiming that India's action represents a violation of international trade rules under the World Trade Organization because national security is being cited as the reason for the demand.
Last year, China introduced a compulsory certification system that requires foreign firms to open up access to source codes for information technology products.
On Wednesday, Japan and India concluded a bilateral free-trade agreement that calls for eliminating most tariffs to boost their trade flows.
India's fresh action could affect Japanese firms, which are planning to enter the Indian market, they said.
MHI-Hyundai deal
JIJI
Mitsubishi Heavy Industries Ltd. said Thursday it has reached an agreement to license its compressor manufacturing technology to South Korea's Hyundai Heavy Industries Co.
The major Japanese heavy machinery maker aims to boost demand by providing the expertise to Hyundai Heavy.
Mitsubishi Heavy, which sells over 90 percent of its compressors in overseas markets, also hopes to secure licensing fees as its profitability from exports is falling due to the yen's appreciation.