China firmly opposes India's ban on 118 Chinese apps

China on Thursday decried a fresh ban by India on 118 Chinese mobile apps including Tencent Holdings’ popular video game PUBG amid border tension between the two countries.

The ban not only damages the legitimate rights and interests of Chinese investors and service providers, but also harms the interests of Indian consumers and the investment environment of India as an open economy, the Chinese Ministry of Commerce said on Thursday.

“India has abused the concept of national security and adopted discriminatory restrictive measures against Chinese companies,” commerce ministry spokesman Gao Feng said. He said the Chinese government has always required Chinese overseas companies to abide by international rules and operate in compliance with laws and regulations.

China firmly opposes the measure, he said, urging India to “correct its wrong practices.”

The list of 118 Chinese apps also includes applications from Baidu and Xiaomi’s ShareSave. India’s technology ministry said the apps were are “prejudicial to the sovereignty, integrity and defense of India, security of state and public order.”

Tensions have simmered between New Delhi and Beijing since a skirmish at a Himalayan border site in June when 20 Indian soldiers were reportedly killed.

India first banned 59 Chinese apps, including ByteDance’s popular video-sharing app TikTok, Tencent’s WeChat and Alibaba’s UC Browser, in June.

“China-India economic and trade cooperation is mutually beneficial and win-win. It is hoped that the two countries will jointly maintain the hard-won cooperation and development situation and create an open and fair business environment for international investors and service providers, including Chinese companies,” Gao added.

Tech analysts say there is a risk the sudden change in the business environment will deter Chinese investment more generally.

“The app bans not only give a negative signal to Chinese firms and investors already in India, but even those waiting for a favorable climate to invest in India may now back off now,” said Atul Pandey, a partner at law firm Khaitan & Co, who has advised several Chinese clients.

Meanwhile, the commerce ministry said China’s recent adjustment to its catalog of technologies that are subject to export bans or restrictions was in accordance with international practice and did not target any specific company.

The update, the first since 2008, was a routine adjustment in line with the development of science and technology, as well as the need for promoting international scientific and technological exchanges and cooperation, Gao said.

The revised catalog, released jointly by the commerce ministry and the Ministry of Science and Technology last week, removed four items prohibited from export and five items subject to export restrictions.

A total of 23 items subject to export restrictions were added to the catalog, while technical parameters of 21 items were revised.