Daily Happenings Blog

Wednesday Post

Two days back Indian govt banned 59  Chinese Apps, and even before that there was movement in social media to delete Chinese Apps from the devices. This app ban may not significantly reduces the revenues of Chinese firms, but is a definite set back for them as India is seen as potential growth market. Secondly  all these Chinese Technology companies have reason for big  worries as they are afraid other countries may follow suit. Experts are of the opinion that India’s move could set a global precedent on this issue .Chinese companies were wanting to show that they can succeed  beyond their home market, and India was considered to be big market for their Apps. In the Europe US giants Facebook and Google are firmly established, along with their home country, additionally they have major chunk of market share in India, Southeast Asia and other areas of Asia.

Now yesterday App like Tik Tok and Club Factory decided to approach the Indian govt seeking to clarify their position, maintain that they were compliant with Indian regulations. The tech giant Google & Apple said that they were yet to receive official communication to delete all the 59 Chinese Apps from their platforms. Yesterday Apple received an order under section 69A of IT Act to remove popular Chinese video sharing App Tik Tok from their App stores. It is learnt that order for removing remaining 58 Apps will be issued shortly. Google which runs the Android store have already received official orders to remove around 20 Apps. Additionally IT Ministry has asked the department of Telecom to instruct the internet service providers and telecom operators to take down the Apps, while also blocking the content on those already downloaded. It looks like the Indian representatives of the major Apps like Tik Tok and Club Factory are considering how to go about in this issue, as per them they have complied with Indian Laws. Let us wait and watch on the next development on this issue.

As per experts, the banning of Chinese Apps is not just a measure of retaliation for Chinese intrusion across the Line of Actual Control (LAC) and killing of Indian soldiers- it is also essential for security reasons. Data pilferage is serious concern with Chinese platforms as China has little respect for intellectual or privacy issues. India govt’s fear is that these Chinese App companies necessarily have to work under the directions of Chinese govt, the latter can use these platforms to mount cyber attack, alternatively they can gather data of individual Indians, when there is tension on border.

Presently the ground situation is not at all similar to the earlier war which happened in 1962, this time the contest with china is on multidimensional level. China may use its huge economic, technological clout to see that India listen to them, and one option available to India is hit them hard where it hurt them most, and that area is to block Chinese products in the Indian market. One thing is certain that India will not be able to stop the imports of items like active pharmaceutical ingredients and many critical items  of other industries, otherwise there will be huge repercussion on Indian economy. So thus banning these Apps which are  having loopholes that it can be threat to national security, and hitting Chinese economy can be  one form of putting pressure on China. The main reason for doing this ban was that for many Chinese companies India is their largest growth market outside China, and banning these Apps does not have the much of an impact on Indian industry. Definitely, some Indian users of these Apps will be inconvenienced, but this will also give an to Indian industry opportunity to develop the alternatives as we have strength in IT sector.

One more area of concern, which is going to emerge is Chinese investments in Indian industries including many start-ups. This skirmish at border has presented us the time to review the entire procedure/system of Chinese investments in India. It has come to light recently that many Chinese/other foreign companies have started donating to Indian political parties in last few years. There is fear among politicians that whether in future China will influence the Indian politics, the govt at centre should look into this matter and should safeguard  Indian political system.

Friends, what is your say in this matter.

Awaiting your views/feed backs/comments.

Anil Malik

Mumbai, India

1st July 2020

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