Chinese media worried if India banned 59 apps, gave this warning to its own companies

Beijing, Ta. 30 June 2020, Tuesday

Amid military tensions with China at Ladakh, India has begun besieging China on the economic front. The Indian government has now banned 59 Chinese apps, including TikTok, for security reasons after tightening rules on foreign investment in Indian companies. The Chinese media has been reacting angrily to the economic damage being done to China by India's tough decisions.

Hu Shijin, a Chinese government spokesman and editor of the same Global Times, tweeted after 59 Chinese apps were banned in India, saying, "If Chinese people want to boycott Indian goods, they will not get more Indian goods." He then warned Indian friends that there was more to nationalism than just nationalism.

An article in the Chinese government's mouthpiece has raised fears that the rise of nationalism in India could hurt trade. "The fire of growing nationalism against China in India has now reached the economic sector," it said. The Corona virus epidemic and the ongoing tensions between India and China could lead to a more than 30 per cent drop in trade between the two countries.

If trade between India and China declines, it will have the biggest impact on China. India is in a trade deficit with China. This means that it imports more from China and exports less. US President Donald Trump also blamed the US for its trade deficit with China and said it would only benefit the US if it ended its relations with China. That is why China is more concerned about the decline in trade between the two countries.

A Chinese government spokesman has warned Chinese companies and investors that China should properly evaluate its investment in India amid growing uncertainties in relations between the two countries, and that Chinese investors should also be wary of the rise of nationalism in India. It also mentions additional checking of Chinese cargo at various ports.

"In the wake of the current border clash between India and China, some leaders and media channels in India are inciting a sense of nationalism among Indians," the newspaper said. In addition to the campaign to boycott Chinese production among Indians, Chinese cargo is being stopped at ports. Even before the border conflict broke out, India had tightened its rules on foreign investment there, which was seen as an attempt to prevent Chinese companies from acquiring Indian companies. That move was made to serve some political interest which shows how immature the Indian market and India's economic strategies are. '

At the same time, it said, India wants to relocate companies based in China, but given the lack of infrastructure in its hardware and software sector, it is difficult. Ending economic ties with China is not so easy. On the other hand, companies looking for potential in the Indian market should be wary of nationalism before investing or expanding, and other countries should also be cautious as there is no guarantee of lasting friendship.

The article estimates that trade between India and China could fall by as much as one-third by 2020 and bilateral trade by as much as 50 per cent.