China-Based ByteDance Could Lose Up To $6 Billion With TikTok Ban

Harin - Jul 03, 2020

The decision of the Indian government to ban TikTok could cause its mother company ByteDance in China to lose up to $6 billion or Rs 45,000 crore.

The wildly popular TikTok is among 59 Chinese apps recently banned by the Indian government following the border clash between India and China last month. The ban could cause its mother company ByteDance in China a loss of up to $6 billion or Rs 45,000 crore.

A ByteDance’s close source said that in the last few years, the company had invested over $1 billion in the Indian market. The recent ban could put its business in a standstill and the company could lose up to $6 billion. Global Times states that that figure would be higher than the potential losses of other apps combined.

Tiktok Ban — The ban of TikTok could cause its mother company ByteDance in China a loss of up to $6 billion or Rs 45,000 crore.

The short video-sharing platform is a product of ByteDance. In the Indian market, the company released a social media platform Helo and Vigo Video app.

According to data from the mobile app analysis company Sensor Tower, in May, TikTok was downloaded and installed 112 million times. The Indian market accounted for 20% of that figure.

On June 29, the Indian government announced that it had banned 59 Chinese apps as they violated India’s sovereignty, integrity, defense, security, and public order.

Tiktok India — The wildly popular TikTok is among 59 Chinese apps recently banned by the Indian government.

The decision came after Indian and Chinese troops engaged in hand-to-hand combat in the Galwan Valley. The border clash between India and China on June 15 evening could be considered the most serious in over 40 years. India claimed that 20 of its soldiers were killed, while China did not mention casualties. The two sides continue to blame each other despite reaching an agreement to de-escalate. After the border clash, Indians started boycotting Chinese products.

The government of India has been taking measures to be less dependent on its neighboring country. Recently, the country’s Ministry of Commerce and Industry directed that sellers would be required to reveal their country of origin when registering for any new product on the Government e-Marketplace portal. This is to discourage Indian consumers from purchasing Chinese products.