Indian govt's decision to block Chinese apps draws /drɔ:z/ concerns /kən'sə:n/
The Indian government's decision on Monday to block a number of Chinese mobile apps might incur /ɪn'kɝ/ short-term revenue /'rɛvənu/ losses and propel /prə'pɛl/ Chinese tech firms to recalibrate /rɪ'kælɪbreɪt/ their overseas expansion /ɪk'spænʃən/ strategy /'strætədʒi/ in the long term, industry experts /'ɛkspɚt/ said.
The ban cites "sovereignty /'sɑvrənti/ and integrity /ɪn'tɛɡrəti/ " concerns /kən'sə:n/, and Chinese companies subject to the policy /ˈpɑlɪsi/ include short video app TikTok operated by ByteDance, the WeChat messenger from Tencent, Alibaba's UC News and Xiaomi's Mi Video Call.
It is expected /iks'pektid/ to pose "a big stumbling /ˈstʌmblɪŋ/ block" for Chinese internet powerhouses, which bank on sheer /ʃɪr/ user numbers and online traffic to gain a market position overseas, said Raymond /'reimənd/ Wang, a global partner at consultancy /kən'sʌltənsi/ Roland Berger.
"India, the market with the second-largest population /ˌpɑpju'leʃən/ worldwide, is definitely lucrative /'lukrətɪv/ for sectors /'sektəs/ that compete /kəm'pit/ for market scale and share," Wang said. "That advantage /əd'væntɪdʒ/ could be wiped out in the foreseeable /fɔr'siəbl/ period /'pɪrɪəd/ of time."
Chinese tech products and services have a solid /'sɑlɪd/ fan base. For instance /'ɪnstəns/, India claimed /klem/ roughly /'rʌfli/ 30 percent of TikTok's 611 million /'mɪljən/ downloads, according to analytics /ˌænl'ɪtɪks/ firm Sensor /'sɛnsɚ/ Tower in April/ˈeprəl/. Counterpoint /'kaʊntɚpɔɪnt/, another technology research house, said Chinese smartphone makers, represented /ˌrɛprɪ'zɛnt/ by Xiaomi, Oppo and Vivo, currently claim /klem/ more than half of India's smartphone market.
Ant Financial /faɪ'nænʃl/, Alibaba's financial arm, has even brought its technological prowess /'praʊəs/ and business model to India, helping to incubate /'ɪŋkjubet/ the indigenous /ɪn'dɪdʒənəs/ digital wallet /'wɑlɪt/ Paytm, which draws experience from Alipay, its Chinese equivalent /ɪ'kwɪvələnt/.
China is deeply concerned /kən'sɝnd/ about India's statement /'stetmənt/ banning Chinese apps and is checking the facts, Foreign /'fɔrən/ Ministry /'mɪnɪstri/ spokesman Zhao Lijian said on Tuesday.
China and India have both benefited /'bɛnɪfɪt/ from their pragmatic /præg'mætɪk/ cooperation, Zhao said, adding that undermining /ˌʌndə'mainiŋ/ such cooperation goes against India's own interests./ˈɪntrɪst/
The Chinese government has always asked Chinese companies to conduct /kən'dʌkt/ international cooperation on the basis /'besɪs/ of obeying /oˈbe/ international rules and local laws, Zhao said. The Indian government has an obligation /ˌɑblɪ'ɡeʃən/ to follow market rules and protect the lawful interests /ˈɪntrɪst/ of international investors, including Chinese ones, he said.
ByteDance /baɪt/ didn't reply to calls from China Daily on Tuesday /ˈtuzdi/. But a CNN report cited a company statement as saying that the ByteDance team of around 2,000 employees in India "is committed / kəˈmɪtɪd/ to working with the government to demonstrate /'dɛmən'stret/ our dedication /ˌdɛdɪ'keʃən/ to user security /sə'kjʊrəti/ and our commitment /kə'mɪtmənt/ to the country overall /ˌovə'rɔl/ ".
Tencent, whose QQ messaging app services were also on the list, declined to comment. Other Chinese tech firms subject to the new policy were unavailable for comment.
Wang said Chinese tech companies' initial /ɪ'nɪʃəl/ success in India is largely /'lɑrdʒli/ due to the similarity /ˌsɪmə'lærəti/ of the Indian and Chinese markets, as both nations are developing markets with a huge population and both have customers pursuing /pə'sʊ/ cost-effective goods, and their geographical proximity.
Chen Guoli, an associate /ə'soʃɪet/ professor of strategy /'strætədʒi/ at global business graduate /'ɡrædʒuət/ school INSEAD 欧洲工商管理学院 , attributed /ə'trɪbjut/ Chinese firms' success in India to "value for money" offerings, product development pinpointing a precise /prɪ'saɪs/ target group and innovative /ˈinəuveitiv/ apps such as TikTok.
"It seems unclear how this ban will be implemented /'ɪmplɪmɛnt/, whether it means banning new downloads or influencing existing users of these apps," Chen said. "Besides, it's still unclear to what extent /ɪk'stɛnt/ the government is determined /dɪ'tɝmɪnd/ to implement /'ɪmplɪmɛnt/ it."
While a short-term blow is inevitable /ɪn'ɛvɪtəbl/, the impact is unlikely to be sustained /səˈstend/ as technology companies tend to have lower costs when doing business overseas, meaning they have the ability to diversify /daɪ'vɜːsɪfaɪ/ their footprint should a crisis occur, said Wu Xiaole, a professor at Fudan University's School of Management in Shanghai.
The other reason is due to the dominant /'dɑmɪnənt/ position Chinese tech apps hold in the local market, which is set to help them weather the storm given the core technologies that make their products a must-have for local users.
Nevertheless /ˌnɛvɚðə'lɛs/, the ban is still a signal that overseas investors, especially Chinese companies, have received /rɪ'sivd/, and it is certain to increase the firms' operating costs, said Chen from INSEAD.
"These Chinese firms need to think how to enter, who to partner with, and how to localize," he said.
