It is reported that the government is considering to look in to the issue of national security concern of the telecom services provided using the equipments of chinese companies, ZTE and Huwai. The Economic Affairs Secretary is reported to have written to the DOT suggesting that the matter be brought to the notice of Cabinet Committee on Security (CCS) for taking a decision. The companies have stated that they are complying with all rules of the government and denied the charges. The new move from the government seems to have started from the report of the US that the Chinese companies are a threat.
The government should of course enquire in the matter if there is any national security concern for India. But the warning from the US seems to have been started due to business concerns more than National security.