Chinese App Tik-Tok Ban: India has banned 59 apps from China. Subsequently, the Chinese newspaper Global Times has acknowledged that this could cause a loss of billions of dollars to ByteDance, Ticketok’s parent company.
ByteDance looking at a loss of $6 billion after India’s app ban
India banned 59 Chinese apps after China tensed up the border in eastern Ladakh. Buoyed by this move, China continued to threaten India. Global Times even said that it would not affect China’s economy. However, Ban on Tik Tok, Helo and Vigo Video could result in a loss of $6 billion to the Chinese firm Byte Dance.
the company had invested more than $1 billion in the Indian market, and the ban could virtually halt ByteDance’s business there, causing a loss as high as $6 billion. That figure would exceed the potential losses of all the other apps combined,” Global Times was quoted as saying.
India has been a big market for China.
The Global Times has been aggressive about India’s decision. He has said that banning Chinese products in India will affect the economy of India and not China. However, he has acknowledged that India has been a big market for Chinese companies and investors, which he has been eyeing in the last three years. In such a situation, the adverse action of India is also going to affect the companies of China.
Therefore, China is scared of India.
Experts who monitor the digital economy believe that the biggest concern for these Chinese companies is that now other countries of the world can also follow the steps of India. Apart from American companies Google and Facebook, other countries and Southeast Asia were some of the markets where Chinese companies were betting for success in addition to their country.
How Tiktok Found Its Footing
according to one estimate, 38 percent of the top 200 apps in India in the year 2019 are from China. Chinese apps were only slightly behind 41 percent of apps developed in India. Chinese apps were ahead of India in the year 2018. In India in the year 2019, Indian people spent 5.5 billion hours on Tiktok. This is about 5 times more than in the year 2018. This is very important for ByteDance, the parent company of Tiktok, which is going to launch an IPO soon. ByteDance also has a Halo app which is the world’s most valuable startup ($ 100 billion)