According to reports, TikTok’s mother company, China-based ByteDance, could face a loss of $6 Billion following Indian government’s decision to ban 59 Chinese apps including hugely popular TikTok.
As per China’s Caixinglobal.com, the amount is likely more than the combined losses for all the other Chinese apps banned by India.
Following the reports, U.S. Strategist and Military Historian Edward N Luttwak in a social media post called out the naiveté of Chinese President Xi Jinping for thinking there will be no economic retaliation from India for its intrusion into the Indian Territory in Ladakh.
“In Beijing, Xi Jinping’s minions laughed off threats of economic retaliation for the Ladakh attack: “India is very poor, who cares?” Yesterday the owner of Tik Tok the most profitable of the 58 Chinese apps now banned in India estimated the loss: US$6 billion. 57 to go,” Luttwak said in a Twitter post.
A source close to ByteDance said that in the past few years, the company had invested more than $1 billion in the Indian market, and the ban could virtually halt its business there, causing a loss as high as $6 billion.
India was the biggest market in terms of users for TikTok. While the company does not have the same app in its home country but a similar service called Douyin. The Chinese media report claimed that this was a huge blow for the company, especially due to the ban on TikTok.
The other two apps that were on the list and were owned by Bytedance included Vigo Video and Helo. WeChat, an instant messaging application owned by Tencent has also been banned. Alibaba’s UC Browser was another popular name on the list.
The 59 apps are no longer available on either Google Play Store or Apple’s App Store.
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