Are China and India allies
The US has a new ally against China: India
China out, USA in. This is the exaggerated short version of the scene that is currently going on in India's tech and internet world. India is expected to overtake China as the world's most populous country by 2025, and the subcontinent's economic growth was stronger than that of China before the corona crisis. At the same time, the conflict between the two giant states has intensified not only on the border in the Himalayas, but also on the Internet.
The latest development: As reported by Reuters, the Chinese Internet giant Alibaba and its subsidiary Ant Group will stop all investment activities in India in the next six months. Alibaba is thus putting an abrupt (temporary) end to its previous investments - around 2 billion dollars have been invested since 2015. Alibaba had previously invested in Paytm (payment), Zomato (food delivery) and BigBasket (e-commerce).
Cold shoulder for Huawei will be in India
The question would be whether Alibaba and other Chinese internet giants like Tencent could still invest in India at all. Mobile is also being made against Huawei on the subcontinent. There is no formal ban - but India’s telecom companies are following the government’s opinion and have rejected a collaboration with Huawei in the area of 5G expansion and mobile communications.
The provider of network equipment and smartphones, already badly affected by US sanctions, will be hit again by the informal ban in India. Bharti Airtel and Vodafone Idea have already started planning a technical future without equipment, according to the Financial Times. The second largest mobile communications market in the world (after China) is again very interesting for US and European companies such as Nokia or Ericsson.
India is following the example of the USA. President Trump launched a campaign against Huawei to exclude it from the US market because of possible industrial espionage through backdoors. TikTok was also threatened with expulsion from the USA with similar justification.
US companies are investing billions in India
In general, the ties between India and the USA and its Internet giants are getting stronger and stronger. As reported by Trending Topics, Jio Platforms has become the preferred investment destination in Silicon Valley this year. Facebook, Google, Vista Equity Partners, Silver Lake, General Atlantic, Intel, and Qualcomm, along with a few others, have invested more than $ 20 billion in the wireless company.
The attraction of Jio, a subsidiary of Reliance Industries (again the largest company in India): It is a kind of super-telco with almost 400 million users, which is also the portal to the Internet with music streaming, video streaming, news, Games, cloud services, chats, VoIP and even a health portal is. Via Jio, Google and Facebook promise to get a direct line to Indian consumers and businesses in order to make services such as WhatsApp payment or Google Pay attractive to them.
So while US companies are buying access to the Indian (future) market with billions of dollars, Chinese services are being thrown out of the country. As reported, India has already banned the apps from Tencent (WeChat), ByteDance (TikTok), Alibaba (UC Browser) or Baidu (Maps) - in favor of in-house clones and US services.
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