India’s fresh ban on China-linked apps sounds alarm on rising business risks in South Asian market
- India has banned a range of betting and lending apps, many with links to China
- Digital lending has boomed in the country since the start of the pandemic, leading to criticism of sharp business practices
India has banned 232 apps and websites, many with links to China, in a fresh illustration of the risks of doing business for Chinese tech companies in a market with around 1.4 billion consumers.
MeitY did not respond to a request for comment on Tuesday.
India has previously blocked almost 300 China-backed apps since a lethal border clash broke out between rival armed forces in May 2020, citing potential threats the apps posed to “national sovereignty and integrity”. This includes a ban on TikTok, the hit short video app owned by Beijing-based ByteDance, which had 200 million daily users in the country before it was shut down.
The latest ban covers a range of lending and betting platforms and comes as India tightens its regulation of the country’s digital lending sector. However, the move raises fresh questions about the long-term future of Chinese-linked apps in the South Asia nation.
The official Chinese newspaper China Daily reported that “business [for India] with China may not return to normal until trust is repaired”, citing New Delhi’s scrutiny of WeChat, the super app owned by Tencent Holdings, and other Chinese apps.