Biggest Economic Retaliation Step On China By India In 2021


Biggest Economic Retaliation Step On China By India In 2021

India had put a ban on the import of power equipment from China. Amid the nationwide rage to boycott Chinese products after the brutal face-off at Galwan valley, Power Minister R K Singh on Friday said that India will not import power equipment from China. 

India’s decision to put a ban on 59 Chinese apps due to all these apps were violating the security, integrity of Indian citizens.

The Ministry of Information Technology and Electronics in a press release stated that they had received many complaints from various sources, including several reports about the misuse of these mobile apps available on Android and iOS platforms.

How will users be affected?

Banned apps may continue to exist on mobile. But the users are will be unable to use them and all the data will be deleted including the user profile also and these apps have been removed from Google’s Play Store and Apple’s App Store, clients won’t have the option to get to refreshed renditions in future

What are the alternatives to banned Chinese apps?

Chingari, an alternative to TikTok, saw its downloads soar from 1 lakh to 1 crore-plus on Google Play Store soon after the ban on Chinese apps was announced. A hike is noticed in the downloading rate of Google Files when the ES File Explorer is banned by India.

Google lens or the Inbuilt scanning option of Google Drive is the best alternative for cam Scanner.


The decision to ban 59 Chinese apps would have a significant impact on Chinese firms, the real task, a tougher one, at least at this point in time, would be to curtail Chinese venture capital in India’s tech startups.

India heavily depends on Chinese products as 80 percent of the solar imports come from China. To reduce such imports, the power and new & renewable energy minister earlier revealed that the government is planning to levy 15-20 percent duty, which would rise to 40 percent in a year.

The impact on China

India is one of China’s biggest external markets for apps such as TikTok and UC Browser due to a large number of youth in India. While India represents a relatively small source of revenue for Chinese apps, it is still its fastest growing app market in the whole world.

As Indian people are becoming richer, average revenues per user will also increase: India’s digital advertising market is expected to grow by 26% this year but the government actions close off this market.

There may be further action on other Chinese software and hardware, especially on 5G products and services, as Indians become more aware of the potential security threats of Chinese technology.

Indian companies such as Roposo, an alternative to TikTok, may see a surge in interest and new users.

Google Chrome is still the most popular browser app in India, and companies such as Google may also benefit from the blocking of UC Browser by getting more users.

How large are the consumers in India for these banned apps?

As per the sources TikTok, for instance, has seen about 611 million downloads in India over the app’s lifetime, According to media reports, file-sharing tool SHARE IT has about 400 million users. Stat counter places the Alibaba-owned UC Browser second in India market share at 10.19%, after Google Chrome (78.2%).

The new era of techno-nationalism

While immediate India’s actions come from the border clashes, the app ban itself is not that surprising given the broader trend of countries trying to safeguard their citizens’ data. After this more Indians will come online through cheap smartphones and low-cost data plans, personal data will become more valuable to tech firms and governments alike. 

As per the survey by the media to boycott for buying/using products & services of Chinese companies like Xiaomi, Oppo, Vivo, Realme, One Plus, Club Factory, Aliexpress, Shein, Tik Tok, WeChat, etc, 58% of those surveyed said ‘yes, won’t buy from now’, while 39% said ‘yes, won’t buy from now but have to use what I have already purchased’ but still the concept of buying the Chinese products and services were totally dependent on the consumers.

Ban on China will hurt India more

Due to the ban on China, the Indian market will be adversely affected because the majority of the goods were Made in China either a toy car, Mobile phones, Automobile components, etc.

Trade deficits are just accounting exercises and having a trade deficit against a country doesn’t make the domestic economy weaker or worse off.

Ban Will hurt the Indian poor the most

As a rule, the least fortunate shoppers are the most exceedingly awful hit in an exchange boycott of this sort since they are the most value touchy. For instance, if Chinese Air Conditioners were replaced by either costlier Japanese ACs or less efficient Indian ones, richer Indians may still survive this ban by buying the costlier ones but the middle-class men who have hardly afforded an AC, would either have to forget buying the costlier one because it is now too costly (say a Japanese or European firm). Ban on Chinese products will punish producers and exporters because the majority of the goods belonged to China.

Economists says that be prepared to pay more for your next smartphone, TV, car, other items due to there will be a much hike in the tax rates on almost the majority of products and services.

Any increase in duties would raise the cost for vendors, which would be passed on to the manufacturers and onwards to consumers.

But still, the worry continues that why has the Indian industry not become capable of manufacturing all these components in India instead of having all the essential factors.

Now Indian Govt should have to start the entrepreneurial campaigns to motivate the youth of the country and to resolve all the innovation and technology issues in each and every field. India needs to develop its own technology to fulfill all the requirements of consumers as well as India should promote exports to other countries in order to grow big and stable.

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