It appears that yet another blow has been dealt to China. According to a press release issued by India’s government, a total of 59 various Chinese mobile apps are now banned from use within the country, some of which include the popular social media platform TikTok, Clash of Kings, and WeChat, among others. The move comes amid escalating tensions after the two countries exchanged in border clashes several weeks ago.
According to the Indian government, the now-banned mobile applications were stealing and transmitting the unsuspecting user’s data to sources outside of India without authorization. As such, India considers such a misuse of technology an infringement of sovereignty and national security.
Such a move is certainly a significant downfall for China, especially to its Digital Silk Route Prospects. The companies that created the now-banned mobile apps will most likely decrease in valuation, and an increased threat of other countries following India’s suit could very well arise. Furthermore, given that India’s population accounts for a significant portion of usage of such apps, China’s new market share loss will benefit domestic apps or US apps.
Information for this briefing was found via The Economic Times and BBC News. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.