Published 11:29 IST, July 2nd 2020
India's ban on TikTok likely to cost China-based ByteDance loss of up to $6 billion
Chinese mouthpiece Global Times quoting sources said that the loss of Chinese internet company ByteDance – parent company of TikTok — could be up to $6 billion
- Republic Business
- 4 min read
As India banned TikTok - an application of Beijing-based Internet technology company ByteDance that allowed users to create short videos, and lip-sync, Chinese mouthpiece Global Times quoting sources said that the loss to the parent company of TikTok — could be as high as $6 billion. At the time that TikTok was taken down, it had approximately 370 million users on the Play Store, with a large majority of those coming from India.
In its statement post its ban, TikTok claimed to have democratised the Indian Internet, by making its app available in 14 Indian languages, and the high value of loss estimated by the Chinese mouthpiece is a clear indicator of how important a market India is for TikTok.
"We have been invited to meet concerned government stakeholders for an opportunity to respond and submit clarifications. TikTok continues to comply with all data privacy and security requirements under Indian law and has not shared any information of our users in India with any foreign government, including the Chinese government. Further we are requested to in the future we would not do so. We place the highest importance on user privacy and integrity," TikTok had added.
Earlier, issuing a statement on apps ban by India, China had said that it violates international trade norms. Chinese Foreign Ministry spokesperson Zhao Lijian said that Beijing is strongly concerned, and is verifying the situation. He also added that the Indian government has a responsibility to uphold the legal rights of international investors including Chinese ones. However, the statement reeks of hypocrisy as China is infamous for banning far larger Internet companies from operating on its shores with far less explanation.
Chinese apps banned
In a massive development on Monday night, the Home Ministry banned 59 Chinese Apps including TikTok. The Centre stated that it has received many complaints from various sources including several reports about the misuse of these apps for stealing and surreptitiously transmitting users’ data in an unauthorized manner to servers which have locations outside India. Hence, in a move to protect the sovereignty of Indian Cyberspace and to ensure the interests of crores of Indian mobile users, the government stated that this was a major blow to China’s Digital Silk Route ambitions. This move comes amid the ongoing India-China standoff at the Line of Actual Control (LAC).
Moreover, Union Minister Nitin Gadkari on Wednesday announced that India will not allow Chinese companies to participate in highway projects, including those through joint ventures. Gadkari also said the government will ensure that Chinese investors are not entertained in various sectors like Micro, Small and Medium Enterprises (MSMEs). The Road Transport, Highways and MSME minister said a policy will be out soon banning Chinese firms and relaxing norms for Indian companies to expand their eligibility criteria for participation in highway projects.
Prime Minister Narendra Modi quits Weibo
Prime Minister Narendra Modi, on Wednesday, quit the Twitter-like Weibo account in China. The account, which posted messages in Chinese, removed all photos, posts and comments from the PM's official handle. Reports state that 10 days ago, China had deleted 'official Indian statements', including PM Modi's speech from the Indian embassy’s official account on WeChat - China's popular social media app.
PM Modi's Weibo account was set up in 2015 before his first visit to the country as Prime Minister. The account had 115 posts on Weibo, which had to be deleted manually as Weibo has a complex procedure to quit for VIP accounts. While the decision to quit from Weibo was taken immediately, an official process had to be initiated to remove the posts. Moreover, two of the 115 posts were delayed in removing as it is difficult to remove posts with the photo of the Chinese President.
Updated 11:29 IST, July 2nd 2020