6 C
Madrid
Saturday, December 5, 2020

Geopolitical Repercussions of India’s Ban On Chinese Apps

Amid tensions at Indo-China border over the Galwan Valley, India banned 59 Chinese apps in June 2020

Must read

‘Raahiya’ Urges People To Follow Their Inner Compass

INDIA: Post the success of their October 2020 release Jee Le Zara, which was both conceived and received as a youth anthem, Antariksh has just...

How To Become A Social Media Influencer

Gone are the days when social media was just used as a pass time. When people only used to post random stuff...

Upcycled Trophy For Sustainability Awards

SINGAPORE: European Chamber of Commerce (EuroCham) in Singapore went a step further in its Sustainability Awards 2020 with a nature-inspired trophy. They...

15-Year-Old Designer Shines in Minna Fashion Show

NIGERIA. Minna, Niger State: 15-year-old Daniella Mathew was among the six graduates of the Mega House of Fashion Academy who launched their...
Smita Malwe
Smita Malwe
Smita is a communication enthusiast and a seasoned PR professional. She is a keen follower of Business, Technology, Politics, Healthcare; always ready to pen down engaging stories.

India. NewDelhi. Chinese applications have dominated India’s digital space for a long time. Digital companies based out of China expanded their footprints across India at a great pace. From hardware and gadgets to various applications, China’s dominance is significant in people’s lives in India. To counter this dominance, India’s ‘Digital Strike’ resulted in the ban of 59 Chinese apps by the Indian government.

Chinese Investment in Indian unicorns. India expressed its concerns over privacy threats regarding user data and possibilities of data security breaches The Chinese app TikTok has a large userbase in India. Despite this, India contributes to merely 10% of TikTok’s global revenue. Considering the larger stake of Chinese investors in Indian companies, banning these apps hardly scrapes the surface of China’s share in the Indian economy.

- Advertisement -

Notably, many Chinese technology firms, investors and venture capital players acquired a significant or major stake in Indian unicorns and other companies. Paytm, India’s leading digital payment company, poses an investment of around $222 million from Chinese E-commerce giant Alibaba Ventures. Indian Cab aggregator Ola secured an investment of more than $450 million from Chinese investors like Tencent and Sailing Capital. Other Indian unicorns like Swiggy, Zomato, and Policy Bazar also have significant Chinese investment.

Trade barriers. To control China from distress buying of Indian companies, India recently mandated the routing of foreign investments through the government. This move is aimed at regulating the investments received from all the countries sharing land borders with India, including China. As a retaliatory action due to the ongoing border conflict with China, India banned Chinese applications. This action was taken after considering the possible threat these apps pose for India’s sovereignty and safety.

- Advertisement -

China’s growing dominance in the Indian market and investment in Indian enterprises has been a prime concern for the Indian government. In the wake of the increasing demand for electronic hardware and gadgets, India is expected to ramp up its domestic manufacturing capacity. India’s dependence on China for procuring hardware components like Printed Circuit Boards (PCBs), memory devises, processors, microprocessors are distressing for the government.

China retaliates on India’s move. China has blamed India for its actions, claiming a violation of World Trade Organization (WTO) rules. It pointed out India’s discriminatory approach towards certain apps based no clear grounds. China raised the concern over lack of transparency and protocols followed by India. The neighbouring country also blamed India for violating the General Agreement on Trade & Tariff (GATT) and not following the rules of international trade.

- Advertisement -

Following India, The US considering ban of Chinese apps. Mike Pompeo, US Secretary of State, indicated on Monday a move towards revising trade policies against China. He spoke about economic damage to the United States. Pompeo firmly stated that the US now needs to take a different path to deal with China. The US is certainly looking at banning Chinese apps which includes TikTok- a Chinese video social networking app.

The United States and France have supported India’s move on banning the apps. Hence, it is unlikely that India will face any economic sanction.

More articles

Latest article

‘Sab Kushal Mangal’ Out On Eros Now

INDIA: ‘Sab Kushal Mangal’ is now streaming on Eros Now. Helmed by Karan Vishwanath Kashyap, the rom-com ensembles a talented cast including...

‘Raahiya’ Urges People To Follow Their Inner Compass

INDIA: Post the success of their October 2020 release Jee Le Zara, which was both conceived and received as a youth anthem, Antariksh has just...

Body Necklaces: Treasures Bloom From Trash

PHILIPPINES. Dumaguete: Body necklaces are sold as luxury items but crafted from the dumpsite of Dumaguete. A community of skillful women creates...

India Beat Australia By 11 Runs

AUSTRALIA. Canberra: Indian cricket team beat Australia by 11 runs in the first T20 match on Friday. India now leads the series...

ULLU Drops Teaser Of Its Multi-Starrer Drama ‘Peshawar’

INDIA: ULLU, the digital streaming platform has dropped the teaser of its most ambitious project Peshawar today. The show is based on...