I'm surprised the Chinese government has not responded to India's ban of Tik Tok and those other Chinese apps. Sure there may not be many Indian imports to target but it could definitely do more like pull investment out of India or restrict exports to India's IT industry. Does China not believe the ban will be permanent? Quite curious considering China retaliated against a lot of US moves in recent years.
I think the better question would be, is there really a need to response in any way?
Considering that India tightening rules doesn’t actually completely stop Chinese investments and I doubt India will completely stop Chinese investments either, of the ones that got hit apart from bytedance the rest aren’t exactly losing all that much. For baidu and tencent, any Indian that want to work or trade in China will have to use their services regardless of the ban, so there is no real effect on them. There are other apps such as online shops, dedicated to the Indian consumer market, probably with Chinese investment, but online shops are easy and cheap to setup, user number can be increased via ads which is just some money thrown out, the most difficult and worthwhile part comes in the form of the merchant network... since the pandemic is only starting in India and all the issues with the Indian economy, the SMEs merchants, which would normally make up the largest and most profitable group for online shopping services, probably isn’t worth much now, a majority will likely be heavily affected, with the Chinese goods being shunned so their existing stock might become more difficult to sell, the need to replace with more expensive goods requires more capital they are unlikely to have and a weaken consumer market will probably see these companies saying bye bye fairly soon. There is the further lost of jobs from, the companies dedicated to the Indian market, as they shut their doors abruptly. Tho losing the investment may suck but depending on the way the companies work the lost might not be as much as most like to
The Indian social media network gaining user means nothing if they can’t monetise it, they will be burning capital without much return. The weaken economic situation in India means less disposable income in general, so the support the creator model that tiktok uses would take a hit anyway, the new social media will need to take more steps to monetise Indian user data, but there is nothing worthwhile to monetise if there is no economic activities to be had. This also applies to the online shops
India might have seem to be a good market before the pandemic but we weren’t exactly hearing multiple million/billion investments constantly and consistently even before this sh**show. IT investments requires a very educated work force, which they lack, manufacturing requires massive investments which India is not attractive enough for yet. I doubt many companies are looking to go to India now that they are making problems for Chinese made parts which a lot of manufacturing will need, why bother going to India when you have Vietnam, Thailand, Malaysia and Indonesia to go to, which is right next door to China, so parts can come easier and quicker should they be needed, the access to these markets is also much more worthwhile anyway.
Again, China should sit back and watch the show, the Indian gov move is good politically but makes no sense economically, companies don’t act on politics, they act on profits and right now India is not looking profitable at all. Their is no need to waste energy to response to this, the economy will do that for you as the Indian gov, population and the pandemic do all they can to devastate their own economy.