India Has Hit China’s Achilles Heel But Real Test is 5G: Fernandes

Blaise Fernandes, director at Gateway House, feels the ban may affect the global valuations of Chinese companies.

Sanjay Pugalia, The Quint’s editorial director, spoke with Blaise Fernandes, director, Gateway House on the implications of the ban on Chinese apps and whether the ban affects stakeholders.

(Image: Kamran Akhter)

In a move that is seen widely as a response to the standoff along the LAC, the government on Monday, 29 June, announced a ban on 59 apps, all of them Chinese-owned, including the hugely popular TikTok.

According to a press statement issued by the Ministry of Electronics & IT, the banned apps have “engaged in activities which is prejudicial to sovereignty and integrity of India, defence of India, security of state and public order.”

Sanjay Pugalia, The Quint’s editorial director, spoke with Blaise Fernandes, director, Gateway House on the implications of the mass ban on Chinese apps and whether the ban affects stakeholders.

According to Fernandes, the government’s decision “has struck at China’s achilles heel”. He explains that a large part of the Chinese technology giants’ valuation is driven by their operations in India and this ban can subsequently impact their global standing.

“Investors will be looking at any app from an India point of view also. So, if you’re not present in India, it affects your global standing, it also affects your global valuation,” Fernandes said.

He, however, points out that the China will bounce back in a calibrated manner and the next big development to track is in the realm of 5G and China’s hardware dominance.