BYE-BYE CHINESE APPS

(need and impact of banned Chinese apps)

Introduction:
Recently, the Government of India, on june 29 banned widely used 59 apps (like cam scanner,
tik tok, Helo, Likee, Viva Video,shareit, UC browser, club factory etc.) connected to Chinese
companies. These apps are considered to be of china origin. The Indian government cited
security and privacy concerns on account of it. This has been issued to intermediaries such as
Google and Apple who host these Chinese applications on the respective play store and app store
and they have been ordered to remove all such mobile applications with immediate effect.
Similar instructions have also been provided to Internet Service providers (ISP’S) as well, to
block the access of these applications. However, it seems to be the part of avenge for Chinese
incursions in Ladakh over the border tensions. The current standoff along the Line of Actual
Control (LAC) between India and China, following killing of 20 Indian soldiers on June 15, has
a drastic impact on the Indian economy. The government has invoked powers under section 69A
of the Information Technology (IT) act,2000 (power to issue directions for blocking for public
access of any information through any computer resource) and adopted a emergency route to
issue ban orders. This is the primary law that deals with cyber-crime and electronic commerce in
India. The government called for boycott of china. The Ministry of Electronics and Information
Technology has opined that its actions were based on reports and complaints about misuse of the
apps for stealing and surreptitiously transmitting users’ data in an unauthorized manner to
servers which have locations outside India. It has also stated that the ban on Chinese apps is to
safeguard the sovereignty and integrity of India and to protect the data and privacy of Indian
users. It was an uncanny and bizarre action taken by the Indian government in already ongoing
Covid-19 pandemic been faced globally.

Need for ban on Chinese apps:

There was a need for such uncanny and inevitable action as stated by the Indian government. The
Ministry of Electronics and Information Technology stated that these Chinese applications pose a
threat to national security, sovereignty and integrity of India. They are vulnerable to Indian users
as well, as stated by Indian Cyber-crime Coordination Centre under Ministry of Home Affairs.
Because, they are known to steal user’s data and store them offshore servers which basically
threatens the data security. This decision has been made with the advice of various citizen groups
that have called for boycott of goods and services in the backdrop of ongoing tensions with
China.

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Impact of ban on Chinese apps:

The move to ban the Chinese apps has a tremendous and prolonged impact on the scores of units
like Indian users, Indian economy, Chinese app providers. Millions of Indian users operate the
popular apps that are banned by the government. This strategic move could result in the ravage
of healthy relations between India and China. And even there was clarion call by number of
ministries to restore the status quo ante. But, so far, no action has been taken place.

Impact on Indian users:

Scores of people across the country around 100 millions users faced, from the inception of ban,
many challenges. The banned apps automatically, get deleted from the Google’s Play Store or
Apple’s App store. Though, the installed apps may continue to exist on mobile devices. But, for
now the latest versions of the apps have been removed from Google’s Play Store and Apple’s
App Store, Indian users will not be able to access updated versions in future. However, if a
notice goes out to internet service providers asking that data flow from these apps may be pulled
up, that could impact the functioning of existing installed apps on the mobile devices. The
banned apps have a tremendous user base in India. Users of banned browsers or video apps may
shift to similar offerings from other apps. Meaning thereby, Indian users would substitute the
banned apps by the existing Indian apps. And also the banned apps amassed the hundreds of
millions of users on account of various reasons. At the same time, it would have positive impact
on the Indian apps too. They would get a chance to excel in the Indian market. They would
gradually grow and come up with many more new options.

Impact on the Indian economy:

The move to ban the apps could impact India both in terms of investments and employment, and
also would lead to economic repercussions. In terms of employment, scores of people get
employment in Indian companies owned and operated by the Chinese companies. It will
negatively affect both the employees and employers. It will lead to some sort of unemployment
in India because of the shutdown of Chinese companies which have been banned. Statistically,
employment ratio gets lower as recorded last year. And in terms of investment, Chinese
companies would no longer be allowed to invest in the Indian companies. Nor, Indian companies
would be permitted to invest in Chinese companies. This could result in the steadily decline in
the country’s income. The Indian economy has swiftly impacted the import-export structure. The
Chinese apps which have been banned also include the trading apps, meaning selling their
Chinese products in India. For instance Club factory, Shein is considered to be one of the popular
selling brands throughout the country. Many Indian users used to order from these apps, as it
gave the products at reasonable price. The price and the looks are among the factors that
influence the users to buy. So, this resulted in the imports from china. But soon after the order
being issued, there was seemingly decline in exports to zero. The ban has created a supply
imbalance in the market which will attract Indian startups to feel the void. Indian startups would

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now get a chance to manufacture and sell locally within India. It would certainly enhance the
country’s revenue. And, also the share of manufacturing or trading sector in GDP (Gross
Domestic Product) would skyrocket the percentage.

Impact on Chinese app providers:

It is most likely that the move was aimed at Chinese economic interests. The income generated
from the Chinese banned apps, is the main source of income of china. With the ban of Chinese
apps the source of income is now gone. These applications have very large Indian base and large
part of revenue comes from the Indian market. So the decision will likely to affect the revenue of
Chinese companies which could possibly exert some pressure on the Chinese government as
well. And at the same time, it would also affect the Chinese relations with India.

Conclusion
Banning Chinese apps is nothing more than a face-saving exercise to counter the negative
publicity over Chinese ambush. It is like putting band-aid over a gunshot wound. The decision is
welcomed by all, but at the same time it raises public outrage all over the country. It's a soft
strike at the Chinese in the form of a payback or an avenge for the recent violent conflict. There
are many Indian apps in stores that will replace Chinese apps and have fewer privacy concerns. It
will boost the “Atamnirbar Bharat mission” started by our renowned Prime Minister Narendra
Modi. He also promoted, in his address to the nation “Vocal about local” which is an
endorsement of economic globalization and international trade.

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Name of the Author- Deepika Dhemla

Name of the course- B.Com.L.L.B. (Hons.), currently in 3rd year.

Name of the Institution- University Institute of Legal Studies, Panjab University, Chandigarh.