Will China Pay Big Price in Global Tech War by Messing With India?

Global tech war has reached a turning point, with India banning Chinese apps. China seems to have scored a self-goal

Published02 Jul 2020, 11:29 AM IST
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3 min read

Video Editors: Vivek Gupta, Ashutosh Bhardwaj

Some are calling India's decision to ban 59 Chinese apps a 'digital strike' while others see it as a befitting reply. Actually, all this is part of a global tech war that has suddenly reached a turning point, with India blocking the Chinese apps. The actual battlefield was 5G spectrum. Here, China seems to have scored a self-goal and might have to pay a huge price for messing with India.

'Challenger' China's Wrong Move?

China was a challenger in this global tech war but has it now scored a self-goal. This technology war was mainly between USA and China. USA was initially far ahead, and China realised that if it wants to compete with USA, the only way is to adopt the 5G spectrum fast. India was neutral in this sector.

First, American companies entered the spectrum. Then Chinese companies followed suit. India welcomed these companies. India was in talks with Chinese company Huawei. There were even talks of starting a 5G trial last year but the trial date was later postponed.

Actually, the conversation was going on between Huawei and India for more than ten years but they never reached an end. Following the ongoing India China border standoff, the clashes at Galwan valley near LAC on 15 June and then India banning 59 Chinese apps, Huawei appears to be out of the picture.

Similarly, another big Chinese company ZTE manufactures telecom goods. Government and private companies of the country are most likely to stop doing business with ZTE. The Government of India has not officially confirmed anything, but sources say that MTNL and BSNL have refused to do business with these two companies. By banning 59 Chinese apps, India has given a clear indication to China but India has to move forward in this direction.

Not Allowing Huawei in India's 5G Trial Will Be a Bigger Setback For China

Despite highly complex relations with China, India's business relations with the country were growing. However, now it is clear that China has lost a huge market in India in the technology sector, especially 5G. There are four big markets in the world in terms of technology - USA, China, India and European countries. India was a good market for China but it appears that it is lost now.

China Might Be Isolated in the Global Technology Sector

USA has been warning about China's technology for many years. During Trump's reign, several investigations have started against State-run Chinese companies such as Huawei and ZTE. USA has also said that Huawei and ZTE are threats for the security of the country. There is no ban yet, but looks like USA is moving in that direction. There are also apprehensions that UK, other European countries and Australia could also steer clear of Chinese technology.

Reportedly at the insistence of USA, the daughter of the owner of Huawei, who is also the CFO of the company, was arrested in Canada. Two company officials are currently in a Canadian jail. China recently arrested three Canadian citizens to get them released. But Canada is not under this pressure. Prime Minister Justin Trudeau has made it clear that Canada is not going to give in to China’s blackmail.

Overall, there are several barricades ahead of China in the technology sector. The big question is, China can excel in the technology sector, where will it sell its products?

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