Chinese Tech Under Scrutiny, Indian Tech Can Gain

GoI’s was the first move in global action that’s made Beijing nervous

- Sridhar Vembu

This week, there has been a sharp crash in share prices of prominent Chinese tech companies. Over the past few months, a steady expansion of government regulation has led to a heavy decline in market capitalisation of China’s big tech companies.

Since February 2021, Chinese tech companies have lost more than $800 billion in market value. Indian tech companies are aware that these developments will create unprecedented opportunities for them.

Beijing cracks down hard

What is happening in China? Since late last year, the Chinese government has been taking regular measures to address issues like violation of anti-trust law, unfair market practices, user data privacy and mishandling user data by tech companies.

Some of the country’s largest big tech companies like the Alibaba group, DiDi, Tencent Holdings, and ByteDance have come under government scanner for alleged violations. For instance, Tencent’s WeChat, China’s largest messaging app, has temporarily suspended registering new users due to ongoing upgrades for compliance with new security regulations.

Because New Delhi cracked down