Crouching Tiger and Hidden Dragon

The movie name aptly sums up the shadow boxing between India and China for Asian supremacy. Reams of newsprint and webprint have already been written comparing India and China. Some argue that India with democratic institutions would eventually win while some claim China would brush India aside.

Even I am not sure who would prevail. But what I would like to highlight is the story of
Huawei Technolgies, a chinese company with office in India.

1. India is supposed to be a low cost development center. Then how come, Huawei is rumoured to pay their Indian engineers twice the prevailing market rate?
2. If a product costs 100 rupees to sell, any company has to ensure that the development cost for that product is minimized so that profit is maximized. (simple economics). How come only Huawei is able to pay their engineer's more?
Well their gameplan is simple:
1. Use the Indian engineers to teach the Chinese engineers and then eventually boot them out.
2. Use the Indian engineers as Trojan horse to penetrate the Indian market.
An example: Recently Huawei bid for supplying Telecom equipment to India! All the communication between our Armed forces will be easily overheard by the chinese army! (The Chinese PLA would be laughing their heads off)
3. Who founded Huawei ? U won't believe this ! An ex- Chinese army officer!
4. Who are the major stock holders in Huawei ? A lot of chinese telecom companies. But who owns those companies? Chinese goverment!
5. What is the revenue and expenditure ? Where are the revenues routed to?
All this is very opaque.

In case u are skeptical , the same is mentioned in the Sept issue of Economist (US publication)
attached below.

Hopefully Indian engineers working in Huawei would be smart enough to program trap doors in the software they design and thus prevent Huawei from achieving their goal.