The government banning 59 Chinese apps has led to huge losses for the apps' parent companies. But, the highest damage is for ByteDance, the parent company of TikTok. In a report published in the Chinese government newspaper Global Times, it has been reported that ByteDance alone will incur a loss of 45 thousand crore rupees (6 billion).
According to reports, TikTok did not earn much from India, although it was included in the countries where it was downloaded the most. By this, ByteDance had invested the most in the country. Chinese investors and traders have suffered the most from this move of the government.
"What the Indian government and people have done has dealt a severe blow to the confidence of Chinese investors and traders and the Indian economy could remain subdued for a protracted time under the devastating shocks from the coronavirus outbreak," Global Times said.
The loss of Chinese internet company ByteDance – mother company of Tik Tok — could be as high as $6 billion after Indian government banned 59 Chinese apps including Tik Tok, following deadly border clash between Indian and Chinese troops last month: source pic.twitter.com/wGvnqVO7mR
— Global Times (@globaltimesnews) July 1, 2020
The central government on Monday banned most of the major Chinese apps such as TikTok, Shareit, UC Browser, Helo, Mi Community, Club Factory, WeChat and other apps. Law, electronics and information technology minister Ravi Shankar Prasad said that the government banned these apps because it was threatening the unity, integrity, and sovereignty of the country.
Cyber Expert Pawan Duggal says that by 2030, China has set a target to create the world's most advanced artificial intelligence and machine learning. The work of preparing their most advanced technology was going on with the data from the Chinese apps present in the country. If the flow of data being collected from India is broken then the work of their Artificial Intelligence Project will be badly affected. The Chinese government embodies the dream of earning billions of dollars from this project. India's new decision can blow off the big budget project.
However many have come to conclusions that the losses incurred are more than $6 Billion. One of the twitter users wrote that the losses are around $30 Billion.
ByteDance was planning an IPO in Feb 2020 and was eyeing a valuation of $100 billion .
With one third users gone in one shot the loss is as high as USD 30 Billion and not just $ 6 billion as suggested by you.
— Rishi Bagree 🇮🇳 (@rishibagree) July 1, 2020