ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintTitle ChevronIcon Twitter
Caixin

India ban could hit TikTok parent company to the tune of $6bn

Country is app's largest market outside China in terms of users

An Indian mother who used to post over a dozen videos on video-sharing app TikTok, and her daughter are seen in a mobile phone's screen as they make a video that they said will upload on an Indian app inside their house in Mumbai on July 1.    © Reuters

China is quickly finding out the cost of clashing with one of your major trading partners.

This time it's not the U.S., but India that is creating headaches for some of China's leading tech names, following a weekslong territorial dispute on the two countries' shared border in the Himalayas. That clash has resulted in fatalities, casualties and a war of words, including calls among Indian consumers to boycott Chinese products.

New Delhi joined the fray earlier this week by banning 59 Chinese apps, including the hugely popular TikTok video-sharing app that boasts more than 120 million local users. Now an insider at TikTok parent ByteDance is telling Caixin the ban could come with a heavy price tag, costing the company more than $6 billion in lost revenue -- more than the combined losses suffered by the other 58 banned apps.

India is TikTok's largest market outside China in terms of users, where the service is called Douyin. The app was downloaded in India 611 million times in the first quarter of this year alone, nearly double the total number of downloads for all 2019, according to SensorTower.

While ByteDance is feeling the pain most sharply, another banned Chinese app in India is also feeling a reputational pinch after losing one of its highest-profile local users following the ban. That move saw Indian Prime Minister Narendra Modi cancel his official account on Weibo, the Chinese equivalent of Twitter, with the removal of his headshot and more than 100 posts over the last five years, according to India's The Hindu newspaper.

--

Read also the original story.

Caixinglobal.com is the English-language online news portal of Chinese financial and business news media group Caixin. Nikkei recently agreed with the company to exchange articles in English.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Try 1 month for $0.99

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends January 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to Nikkei Asia has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more