India banned 59 Chinese applications after tensions along the border in eastern Ladakh. Buoyed by this move, China continued to threaten India. He even said that it would not affect China’s economy. However, he has now accepted that the parent company of Tik Tok App could suffer billions of dollars in damages due to the ban in India.
‘May cause $6 billion loss’
China’s propganda newspaper Global Times has tweeted that Tik Tok’s parent company ByteDance could suffer $ 6 billion in damages due to the Indian government banning China’s 59 apps after a border clash in Ladakh last month. If only one app is banned, then it can be understood that China will face a huge economic shock due to the ban of 59 apps.
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.
That’s why China is afraid of India ban
Experts watching the digital economy believe that the biggest concern for these Chinese companies is that now other countries of the world can also follow the footsteps of India. Apart from American companies Google and Facebook, countries in India and South East Asia were some of the markets where Chinese companies were betting for success in addition to their country. After China developed these companies invested in other countries or started service.
Tick-talk was spread
According to an 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. In the year 2018, Chinese apps were ahead of India. In India in the year 2019, Indian people spent 5.5 billion hours on tick talk. This is about 5 times more than in the year 2018. This is very important for ByteDance, the parent company of Tick Talk, which is going to launch an IPO soon. ByteDance also has a Halo app which is the world’s most valuable startup ($ 100 billion).