“The compilation of the data, its mining and profiling by elements hostile to national security and defence of India, which ultimately impinges upon the sovereignty and integrity of India, is a matter of very deep and immediate concern which requires emergency measures,” it said. “There have been raging concerns on aspects relating to data security and safeguarding the privacy of 130 crore Indians. It has been noted recently that such concerns also pose a threat to sovereignty and security of our country.”
This is the latest on the ongoing dispute between both nations over the Line of Actual Control that separates both territories for which dozens of soldiers were reported to have been killed just recently.Both nations are the most populous in the world and trade tensions between them could impact the growth of businesses which are heavily reliant on the other. China are mostly the producers while India consumes their product, this ranges from a social platform to machinery;
"...According to the World Bank, India imports more goods from China than any other country, buying more than $90 billion worth of products in 2018 including machinery and electronics, chemicals and consumer goods. It exported less than a fifth of that amount to China.
Now, the spat is spilling over into technology, threatening billions of dollars worth of investments into India by Chinese tech giants.
India is now the biggest overseas market for Chinese smartphone makers, which have built factories and created jobs in the country. The attack on Chinese apps could jeopardize China's ambitions to dominate global tech, with India viewed as a major growth market for internet companies such as ByteDance..."
Source - https://amp.cnn.com/cnn/2020/06/30/tech/india-china-app-ban-intl-hnk/index.html
This appears to be a political move from one or both parties, the two possible scenarios are;
• The Chinese government is attempting to use the popularity of companies within its region to get public data
• The Indian government is trying to hurt Chinese based companies as it has one of the largest consumer base for their products.
The Indian government would likely encourage its citizens to use local products, this however could affect the nation if this does not meet the required standards.
Both countries are members of the World Trade organization, with the goal of maintaining a peaceful and efficient trade between nations.
How do you think political interventions would limit the growth of companies and affect global trade?