TikTok dismisses workers in India as ban becomes permanent

The popular short video app announced on Wednesday that it will cut off workers in India after “no clear direction has been given on how and when our programs can be re-introduced.”

“It is unfortunate that, after supporting 2000+ workers in India for more than half a year, we have no choice but to reduce the size of our workforce,” a TikTok spokesman said in a statement. .

TikTok, which is owned by Beijing-based ByteDance, did not say how many employees would be affected, and did not immediately respond to a request for comment for more details.

TikTok made its ruling public days after Indian media reported that the country plans to make a ban on 59 Chinese apps blocked last June permanent, including TikTok, TenCent’s WeChat and Alibaba’s UC Browser. Indian regulators at the time claimed the apps were a “threat to sovereignty and integrity”.
The ban was a huge blow to TikTok an estimated 120 million users in India.

And although TikTok said this week that it’s so “worked steadfastly to comply with the authorities in the country”, it seems that such efforts had little effect.

A source in the Ministry of Electronics and IT told CNN Business on Wednesday that the government has decided this week to make the ban permanent because it is dissatisfied with the way Chinese companies are concerned about data collection and security.

“We are constantly striving to bring our applications into line with local laws and regulations, and we do our best to address the issues they have,” the TikTok spokesman said. “It is therefore disappointing that, despite our efforts over the next seven months, we have not given a clear direction on how and when our programs can be re – established.”

The spokesman added that the company hopes the app will one day be allowed to return.

High voltages

Tensions between China and India have escalated since last summer, when a bloody clash along a controversial border in the Himalayas killed at least 20 Indian soldiers.
India has since banned dozens of Chinese apps and reportedly moved to join Huawei in India’s 5G telecommunications network. And many Indians have called for a boycott of Chinese goods and services.
The business impact may be limited for some companies, including Alibaba (BABY), which had already scaled back in India after the ban.

Last August, CEO Daniel Zhang announced that the company had ‘decided to discontinue the operations’ of UC Browser, a web browsing app, and other initiatives in India.

“We do not expect this to have a material impact on the group’s overall financial performance,” he said during an earnings call to analysts, referring to an “extensive review of the business.”

A UC Browser spokesperson declined to comment.

Chinese technology companies are betting big on India.  Now they are excluded
Tencent (TCEHY) has not yet set out his plans.

“Tencent complies with all applicable orders and regulations, and continues to comply with applicable laws in the jurisdictions in which we operate. We look forward to continuing to focus on our core markets and provide valuable services to our users,” he said. spokesman said statement to CNN Business. The company did not want to provide further details.

Ji Rong, a spokesman for the Chinese embassy in India, reiterated China’s opposition to the ban on Wednesday.

“Since last year, the Indian side has repeatedly used national security as an excuse to ban certain mobile applications with Chinese background. [are] contrary to the WTO’s non-discriminatory principles, ”she said.

Geopolitical tensions between India and China have meanwhile continued to simmer. On Monday, the Indian Army announced that there was a ‘minor’ face between Indian soldiers and China’s People’s Liberation Army.

The incident took place last Wednesday near a disputed border high in the Himalayas, and ‘was resolved by local commanders according to established protocols’, the Indian army said in a statement.

– Vedika Sud, Steven Jiang, Rishi Iyengar and Manveena Suri contributed to this report.

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