{"id":1148,"date":"2020-12-30T20:11:59","date_gmt":"2020-12-30T14:41:59","guid":{"rendered":"https:\/\/www.sabguru.com\/en\/?p=1148"},"modified":"2021-01-02T20:41:26","modified_gmt":"2021-01-02T15:11:26","slug":"chinese-tech-giants-forced-to-rethink-indian-presence","status":"publish","type":"post","link":"https:\/\/www.sabguru.com\/en\/chinese-tech-giants-forced-to-rethink-indian-presence\/","title":{"rendered":"Chinese Tech Giants Forced to Rethink Indian Presence"},"content":{"rendered":"<p style=\"text-align: justify;\"><strong>Chinese tech<\/strong> companies are among the biggest investors in India\u2019s IT ecosystem. Years of<br \/>\nmutual digital growth (albeit dominated by China) is about to be cancelled by the latest<br \/>\ngeopolitical confrontation of the two neighbours.<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\"><strong>(Indian) Politics over (Chinese) Economy<\/strong><\/span><br \/>\nFor years, Chinese tech companies and online giants have had a noticeable presence in<br \/>\nIndia. Alibaba and Tencent own shares, support or promote many of the online services,<br \/>\nfinancial technology and entertainment segments in the subcontinent. Payment providers<br \/>\n(e.g. Paytm, PhonePe), electronics hardware (Xiaomi, BBK, Huawei) and others employ a<br \/>\nconsiderable amount of local talent in India.<\/p>\n<p style=\"text-align: justify;\">Tension between the two big neighbours has been high ever since June, when they last<br \/>\nengaged in the LAC, with at least 20 Indian soldiers dead. With Covid-19 speeding up online<br \/>\ntransition for many business sectors, this has served as sufficient reason for India to <a href=\"https:\/\/edition.cnn.com\/2020\/12\/10\/tech\/india-china-tech-tensions-intl-hnk\/index.html\" target=\"_blank\" rel=\"nofollow noopener\">stake its claim<\/a> for control of its digital sovereignty.<\/p>\n<p style=\"text-align: justify;\">Both will bear the negatives of the confrontation, inevitably. Chinese digital giants, however,<br \/>\nhave more to lose. With India\u2019s online population currently <a href=\"https:\/\/trai.gov.in\/sites\/default\/files\/Report_09112020_0.pdf\" target=\"_blank\" rel=\"nofollow noopener\">reported at 750 million<\/a> users,<br \/>\nthe second largest global market is a huge loss to them, having invested heavily over the<br \/>\npast few years.<\/p>\n<p style=\"text-align: justify;\">In a few months, Indian officials have banned more than 200 Chinese apps and services,<br \/>\nincluding the immensely popular Tik Tok and WeChat, gaming favourite PUBG and, more<br \/>\nrecently, AliExpress and AliPay, among others. This has withheld income and data flow for<br \/>\nChina and has soured the business climate in the Asian online sector indefinitely.<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\">Who Is Missing Out More<\/span><br \/>\nChinese digital behemoths will miss out on an enormous and still growing base of users, the<br \/>\nlifeblood of digital innovation. India will feel the blow in terms of readily available fresh<br \/>\nnew tech and business models. Besides fintech, China had <a href=\"https:\/\/www.forbes.com\/sites\/suparnadutt\/2018\/03\/09\/how-online-gaming-in-india-is-growing-fast-into-a-billion-dollar-market\/\" target=\"_blank\" rel=\"nofollow noopener\">invested much<\/a> into daily-life<br \/>\napps and proven desi online entertainment choices. Favourite gaming platforms were<br \/>\ndeveloped in synergy, as desi users regularly put their trust in an <a href=\"https:\/\/www.10cric.com\/casino\/\" target=\"_blank\" rel=\"noopener\">online casino app<\/a> or a<br \/>\n<a href=\"https:\/\/www.guide2gambling.in\/in-depth-roulette-strategies-using-the-martingale-system\/\" target=\"_blank\" rel=\"noopener\">Martingale roulette strategy<\/a>.<\/p>\n<p style=\"text-align: justify;\">In the long run, it seems that China will suffer more from the breakup, as the Indian<br \/>\ninternet market represents immense user groups \u2013 demographically and linguistically<br \/>\ndiverse \u2013 and an invaluable testing and capitalisation platform for any sustainable online<br \/>\nbusiness. Having invested much of their plans for future growth in India, they need to<\/p>\n<p style=\"text-align: justify;\">rethink such a strategy. And do it fast.<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #3366ff;\">Indian IT Making New Friends<\/span><br \/>\nIt is also inevitably true that Indian digital start-ups will be at risk, especially in the short<br \/>\nrun. Chinese tech had invested more than USD 4 billion in the sector over the past few<br \/>\nyears, with Xiaomi committing almost USD 500 million in a single year. Tencent is also<br \/>\nnotoriously the largest \u201cstrategic investor\u201d in the local start-up ecosystem.<\/p>\n<p style=\"text-align: justify;\">Now that India is willing to inspect more carefully the inflow of new assets on its territory,<br \/>\nmany important players are starting to rethink their presence. Paytm\u2019s parent company Ant<br \/>\nGroup, a leading fintech player, is <a href=\"https:\/\/www.reuters.com\/article\/ant-group-paytm\/exclusive-chinas-ant-considers-paytm-stake-sale-amid-tensions-with-india-sources-idUSL4N2IH2NH\" target=\"_blank\" rel=\"nofollow noopener\">considering selling<\/a> its 30% stake in the payment provider.<br \/>\nCited tensions and a tougher competition because of unilateral restrictions are expected to<br \/>\npush others to reconsider their long-term strategy.<\/p>\n<p style=\"text-align: justify;\">The Central Government has promoted the Digital India initiative strongly, hoping that the<br \/>\nvoid left by Chinese and other global players might stimulate home-grown digital<br \/>\ncompanies. In the short term, however, it might just need the foreign investment support<br \/>\nwhich has practically started pouring in immediately after the summer events.<\/p>\n<p style=\"text-align: justify;\">Where US giants Google Pay and PhonePe (Walmart) are currently undisputed leaders,<br \/>\nIndia has seen the entry of Facebook\u2019s WhatsApp Pay, Amazon\u2019s payment service and other<br \/>\nlocal startups. Mukesh Ambani\u2019s Jio Platforms have struck a series of agreements securing<br \/>\nmore than USD 20 billion from global investors in the past few months alone. Their aim is<br \/>\nto support local tech growth, developing a self-sufficient desi IT sector and a mature digital<br \/>\nconsumer base at the same time.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Chinese tech companies are among the biggest investors in India\u2019s IT ecosystem. Years of mutual digital growth (albeit dominated by China) is about to be cancelled by the latest geopolitical confrontation of the two neighbours. (Indian) Politics over (Chinese) Economy For years, Chinese tech companies and online giants have had a noticeable presence in India. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1151,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[3,10],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Chinese Tech Giants Forced to Rethink Indian Presence - Sabguru News English<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.sabguru.com\/en\/chinese-tech-giants-forced-to-rethink-indian-presence\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Chinese Tech Giants Forced to Rethink Indian Presence - Sabguru News English\" \/>\n<meta property=\"og:description\" content=\"Chinese tech companies are among the biggest investors in India\u2019s IT ecosystem. Years of mutual digital growth (albeit dominated by China) is about to be cancelled by the latest geopolitical confrontation of the two neighbours. (Indian) Politics over (Chinese) Economy For years, Chinese tech companies and online giants have had a noticeable presence in India. 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