China's Commerce Ministry Strongly Condemns India Ban on Chinese Mobile Apps 3s1c5y Technology News

India has banned another 118 mostly Chinese mobile apps including Tencent Holdings' popular PUBG Mobile. 1a5i1y

By Reuters | Updated: 3 September 2020 15:55 IST

China's Commerce Ministry Strongly Condemns India Ban on Chinese Mobile Apps

Tencent's shares fell more than 2 percent on Thursday after the ban of its popular videogame PUBG Mobile py4t

Highlights

The list of 118 mostly Chinese apps includes Baidu and Xiaomi's ShareSave
India's IT ministry said the apps were a threat to India's sovereignty
India ranks No.1 in the world in of PUBG Mobile s

ment

China's commerce ministry said on Thursday it strongly opposed India banning Chinese mobile apps. Indian actions violate the legal interests of Chinese investors and services providers and China asks India to correct its mistakes, commerce ministry spokesman Gao Feng told a briefing.

Mobile, citing data security concerns.

Legal Experts Raise Questions About PUBG Ban

Shares of Tencent fell more than 2 percent on Thursday after the ban. The stock traded 2.2 percent lower at HKG $533 (roughly Rs. 5050) in the afternoon, on track to snap two straight sessions of gain.

The list of 118 mostly Chinese apps also includes those from ShareSave, as India stepped up pressure on Chinese technology firms following a standoff with Beijing at the border.

The ban was announced a day after a senior Indian official said troops were deployed on four strategic hilltops after what New Delhi called an attempted Chinese incursion along a disputed Himalayan border.

Government Said to Widen Chinese App Ban to Include More From Xiaomi, Baidu

Tencent declined to comment on the announcement and the Chinese embassy in New Delhi did not immediately respond to a request for comment.

India's technology ministry said the apps were a threat to India's sovereignty and security.

These "apps collect and share data in a surreptitious manner and compromise personal data and information of s that can have a severe threat to the security of the state," the ministry said in a statement.

The ban is a blow for Tencent in India whose PUBG Mobile battle royale game is a smash-hit in the country. India ranks No.1 in the world in of PUBG Mobile s, ing for roughly 175 million installs, or 24 percent of the total, apps analytics firm SensorTower says.

India UC Browser, in June.

That move, which India's technology minister referred to as a "digital strike", followed a skirmish with Chinese troops at a disputed Himalayan border site in June when 20 Indian soldiers were killed.

Tensions have simmered between New Delhi and Beijing ever since and sources told Reuters last month of another ban of 47 mostly clone apps.

India's prohibitions have stalled business operations of several Chinese companies in India. They have also forced to put on hold all plans to invest in the country for at least six months, Reuters reported in August.

Tech analysts say there is a risk the sudden change in the business environment will deter Chinese investment more generally.

"The app bans not only give a negative signal to Chinese firms and investors already in India, but even those waiting for a favourable climate to invest in India may now back off now," said Atul Pandey, a partner at law firm Khaitan who has advised several Chinese clients.

Should the government explain why Chinese apps were banned? We discussed this on Orbital, our weekly technology podcast, which you can subscribe to via Apple Podcasts, Google Podcasts, or RSS, the episode, or just hit the play button below.

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