Chinese App Ban Hits TikTok Parent Firm ByteDance's $1 Billion India Expansion Plan
A ban on dozens of Chinese apps following a border clash with China has possibly derailed a $1 billion India expansion plan of China's ByteDance, while also sparking an uproar from users of its popular TikTok video app. TikTok was removed from Google and Apple app stores in the country after the Centre said on Monday night that it was among the 59 apps which it believed posed a "threat to sovereignty and integrity". The government order didn't name China, or cite the border clashes.
App analytics firm Sensor Tower said all the 59 apps named were of Chinese origin, including Tencent's WeChat and Alibaba's UC Browser. "If this is not rolled back, these companies would be constrained to cut back their operations in India, potentially resulting in a loss of employment," said a lawyer who advises a Chinese company whose app has been banned.
China's foreign ministry said it was "strongly concerned" about India's decision, adding that India had a "responsibility to uphold the legitimate legal rights of investors including the Chinese companies."
The biggest casualty of the move appears to be ByteDance, which has since last year hired several senior executives and laid out plans to invest $1 billion in India. India is TikTok's top growth market and accounts for 30% of its 2 billion downloads worldwide.
TikTok said in a statement the Indian government had invited the company to respond to the ban and submit clarifications, adding that it complies with all data security and ...
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