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Impact on Chinese economy after India banned 59 Chinese apps

Impact on Chinese economy after India banned 59 Chinese apps proved to be befitting move as its Impact on Chinese economy can be seen. Dispute  between India & China goes beyond the borders when India banned 59 Chinese apps.
As we all know that India is the leading consumer of Chinese products in the world. Indian market is The big source of Chinese income. So this is well defined that if India will not consume the Chinese product , it will harm to Chinese Financial Growth.
 After the border dispute with China , Indian government banned 59 Chinese apps.  Now we will find out that how will Indian strategy towards Chinese Economical Growth and Impact on Chinese economy after India banned 59 Chinese apps.
Impact on Chinese economy after India banned 59 Chinese apps




Why India Banned Chinese Apps  


On June 15, China and India’s military troops clashed in hand-to-hand combat along a disputed border in the Himalayan mountains, resulting in deaths from both sides. This was the deadliest confrontation between India and China along that border in 45 years, marking a dangerous escalation between the two nuclear powers.
Between 1993 and 2005, India and China signed a series of border agreements, including a 1996 agreement prohibiting the use of firearms in the volatile area. So what are both sides fighting over exactly, and what is the significance? The McMahon Line forms a part of the long border between China and India, which extends for more than 3,400 km in the mountainous region of the Himalayas. This frontier  referred to as the Line of Actual Control, or the LAC, which includes landmarks such as the Pangong lake and the Galwan Valley. 
The LAC fringes mountains, valleys and plateaus, making the flow of goods and activities laborious. As a result, India has been upgrading its roads and military infrastructure for over a decade, which will allow the rapid deployment of its forces. Gal-wan river, where the latest fatal confrontation occurred, has a vantage point of a road being built by India, which makes it a strategic and significant location. 

Economic Analysis of both countries 

The two countries make up about 36% of the world’s population. China has the second largest economy in the world with a GDP of more than $14 trillion while India takes the fifth spot with $2.9 trillion. As their economies grow, both countries have been investing heavily in their military arsenals. In 2020, China allocated more than $178 billion for defense, although many analysts think that the actual figure is much higher. Mean while, India’s defense budget stands at around $73 billion.
The Stockholm International Peace Research estimates that China has 320 nuclear warheads, while India has 150. Even before the latest clash, geopolitical tensions between the two juggernauts have been on the rise of late. India’s neighbors — Pakistan, Sri Lanka and Nepal — have forged closer ties to China in the recent years under its Belt and Road initiative. 
To counter the rise of China, India has sought closer ties with strategic players such as the United States, Russia, Japan and Australia. India is trying to find its own way to put pressure on China. India should  improve its relationships with Australia, Japan, Vietnam, United Kingdom, with all the countries who  worried about China in order to give itself a little bit of leverage.

Impact on Economies of both countries

The pandemic has taken a toll on the economies of both countries. This means that the dynamics between Beijing and New Delhi have shifted too. As companies evaluate their supply chains in the wake of the pandemic and the trade war between the U.S. and China, India has been positioning itself to lure more foreign investment. In recent years, Prime Minister Modi’s  office has pushed for India to be self-reliant, and has imposed curbs on Chinese imports and investment. 
The latest clash has also led to a boycott of Chinese companies in India, including a ban of 59 Chinese apps such as TikTok and We-chat, while Chinese firms Huawei and ZTE may be excluded from the roll out of India’s 5G network. Indian startups – which have been courting Chinese funding in recent years – are also finding themselves in a quandary.


Food Industry


Indian food delivery unicorn Zomato raised $150 million from China’s Alibaba group in January 2020, while its competitor Swiggy is getting favor  by Tencent and Meituan-Dianping. You’re talking about a world in which China is going to have curtailed economic relations with the world’s leading super power, the United States, and the world’s most important emerging market, that is India. 
So I think you’re going to have a very different economic picture as the US-India relationship coheres around this problem , and every corporate officer and institutional investor needs to be prepared for a world in which you have a confrontation against China by two of the most important democracies in the world. While it is unlikely that the border clash will lead to a full-blown military conflict between India and China, the saber-rattling hasn’t ceased. The confrontation may just widen their geopolitical rivalry on other fronts in an increasingly divisive world.
So we can say that India – China dispute will affect the economies of the both countries. 

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