In an unprecedented move, the Central Government has decided to ban at least 59 mobile apps with Chinese links on 29th June 2020. This decision came through amidst heightened tensions between Indian and Chinese military at the LAC (Line of Actual Control) in Ladakh since 15th June. These apps include some of the most grossing apps amongst Indian youngsters, namely TikTok, ShareIt, Shein, UC Browser, Club Factory, Viva Video, amongst others.
Invoking the powers vested in it by Section 69A of the Information Technology Act, 2000, read along with some relevant provisions under the Information Technology (Procedure and Safeguards for Blocking of Access of Information by Public) Rules 2009, the Ministry of Electronics and Information Technology blocked these apps "because of the information available they are engaged in activities which are prejudicial to sovereignty and integrity of India, defence of India, the security of the state and public order".
The Ministry, through an official statement, said that it had received an "exhaustive recommendation" from the Ministry of Home Affairs and the Indian Cyber Crime Coordination Centre. In addition to this, it also received representations from several agencies on "security of data and risk to privacy". According to the Ministry, their move came about as a means to safeguard the interests of crores of Indian mobile and internet users. This decision is a targeted move to ensure the safety and sovereignty of Indian cyberspace.
In a press release issued by the same Ministry, it has been stated further that the threats to privacy and data security were "emergent" and that several complaints were received in the usage of these apps by Indian users. It further continues stating that such concerns were even received by the CERT-IN, i.e. Indian Computer Emergency Response Team.
What led to this huge step?
The development has come in the wake of a huge surge in tensions along the 3,488-kilometre-long de-facto border with China, following the Galwan Valley clash in which 20 Indian soldiers were martyred.
The Indian and Chinese troops have been engaged in a continuous face-to-face situation along the LAC at several locations, for approximately two months now. The first violent clash took place between the military troops of the two armies at Pangong Tso on May 5, in which around 100 troops were injured.
Other developments related to Chinese linked goods and services:
Amidst these developments at the national border, several people across the nation have protested against the sale of Chinese goods. Moreover, the Dedicated Freight Corridor Corporation of India (DFCCIL)- a PSU under the patronage of the Ministry of Railways- has even terminated a Chinese company’s contract. The BCCI too has called a council meeting to rethink its sponsorship from Chinese companies. Even the Centre has taken various measures to decrease the number of Chinese imports, in an attempt to make India more self-reliant. Apart from these, recently several Indian companies with Chinese funding have faced the wrath of the public as 'ban Chinese goods' sentiment grows stronger.
Economic Standpoint:
An extremely high number of industries are dependent on Chinese goods and services, be it raw materials, or technological requirements, or any other service. These industries include the pharmaceutical, solar, textile, firecracker and even the bicycle industries. Moreover, there are thousands of domestic MSMEs that use cheap Chinese imports to manufacture better quality products.
Another factor than comes into play when we talk about banning Chinese products is the illegal importing and smuggling of such products into the country. Only in the year 2016-17, a whopping Rs. 1,024 crore worth of smuggled goods was seized by the Directorate of Revenue Intelligence (DRI). It's impossible to examine if this was the only smuggling that took place from China to India.
Therefore, it would be a Herculean task to put an absolute ban on all Chinese-related trade, even though small steps towards the same are being taken. It is impossible to keep our economy afloat and completely banish our economic relations with China at the same time. The massive dependence of our economy on theirs poses a huge risk to all those industries and the people employed under them who earn their bread through this dependence.
However, with regards to the small yet impactful decision of banning Chinese apps, it could prove to be just the tip of the iceberg. For example, 30% of TikTok users are Indians, which amounts to over 10% of its revenue. This statistic speaks volumes for how much a step like this will affect the Chinese app economy. Therefore, rather than boycotting material goods — which would also be detrimental to the Indian economy — boycotting virtual goods might end up giving India a bigger advantage on the global level. Anything that India does to the Chinese app economy will have an impact on the valuation of Chinese companies worldwide.
