The significance of India’s ban of Chinese apps

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Very recently, the government of India decided to ban 118 Chinese apps, including PUBG and TikTok, under section 69A of the IT Act, 2020 on the pretext of threat to national security and concerns related to data privacy of Indian citizens. With this, the total count of the number of banned Chinese mobile apps in New Delhi has reached 224. This move by the government of the country came amidst rising border tensions between China and eastern Ladakh. 

An intriguing topic of discussion and debates in today’s age and time, it might pop up as a group discussion topic during MBA admission interviews or even during placement interviews. To be able to speak on the topic in detail, you must have a thorough understanding of it and so, we’ve listed are a few facts here that might come in handy when dissecting the topic. 

Arguments that speak for the topic

Before you process any further, you must have a clear idea about why the government took this step in the first place. Listed below are points that speak in favour of the ban of Chinese apps in India:

• PUBG records around 13 million users every day which, according to warfare and defence experts, can result in a disastrous breach of personal security in the current situation. Thus, the decision of ban on the usage of Chinese apps in India will ensure security, sovereignty and safety of the Indian cyberspace.

• The ban is expected to reduce India’s dependence on foreign apps. New, local apps have sprung up as a substitute for Chinese apps.

• The ban of Chinese apps will supposedly put the country in pressure and as a result, the trade of China will be hugely impacted. So, in a situation where a major portion of China’s economic strength relies on trade, India’s ban of Chinese apps will act as a major hit to their economy.

• The step to ban apps from China is supposed to give a boost to Aatmanirbhar Bharat and promote start-up culture in Inda. With this step, China is bound to lose ads from the markets of India. And where China will suffer a hit, people of India will feel encouraged to develop their own applications that will not only generate domestic revenue but will also replace Chinese apps in the Indian market. 

• It will bring in more investments into India’s data centres as guidelines of today are stricter than ever before. 

• Ban on Tiktok was demanded for a long time due to inappropriate content and weak vigilance. The ban effectively puts a check on such apps that promote unruly behaviour in the country. 

• The move is also a check on China’s emergence as a global power. It will give impetus to Indian apps and help them flourish.

Arguments that speak against the topic

Now that we are well-versed with the topic of our discussion, let’s dive into the arguments that are spoken against the topic. 

• With this move, an app called ‘Remove China Apps’ got introduced to the Play Store which turned into the fastest growing app in no time. While it did exactly what its name suggested, the app was later removed as it violated Google’s policies. But its mere existence hurt India’s best interests even though it was designed to help it. This goes to show that banning or eliminating a competitor is inherently bad for competition.

• The move of banning these apps is perceived as a mere signature move. Technology experts argue that these apps have already taken the data that they wanted.

• There are numerous Indian startups like Swiggy, Paytm, Zomato, BigBasket and Ola that have Chinese investors. Shutting Chinese apps will adversely affect these Indian startups. 

• Where we feel that the ban of Chinese apps would teach them a lesson, the Indian economy is likely to hurt a lot more than China’s economy would. And this is exactly opposite of what India was trying to accomplish in the first place - being self-reliant. 

• The ban will give American counterparts to each of the Chinese apps eliminated from the country a boost and which will, in turn, delay the progress made by Indian apps in the market thus far. 

• It will add to already high tensions between India and China, increasing border tensions.

• The closure of local offices of these apps will add to high unemployment levels.

• The ban accounts as a violation of World Trade Organisation guidelines of free trade. It sends a wrong message in terms of India’s openness to trade.

• As an impact of the ban on popular Chinese social media platforms, digital marketing budgets and consumer engagement strategies of brands will have to be replanned.

• Most of the startups were using these platforms to create massive reach, the ban would mean shelling more money on marketing budgets.

Concluding remarks

The dilemma of what will happen post this strategic move by the government holds until we see actual results unfold. Now that these apps have been eliminated and banned from the country, it is imperative for India to come up with technological solutions and applications that will replace Chinese apps. But the question remains, will Indian apps be able to woo consumers?