Hong Kong (CNN Business)India and China's fast-growing tech sectors have been caught in the crossfire of an intense geopolitical standoff this year. While both will suffer from the showdown, Chinese tech companies have more to lose.
Tensions between the two countries have been rising since June, when they engaged in their worst conflict in decades: a bloody clash along a disputed border in the Himalayas that left at least 20 Indian soldiers dead. In the following weeks and months, Indian officials banned apps from Chinese tech giants Bytedance, Alibaba (BABA) and Tencent (TCEHY), and reportedly restricted embattled telecommunications equipment maker Huawei from participating in India's 5G network.
Both countries agreed to deescalate military tensions in September, but that hasn't brought much relief for businesses caught in the dispute. ByteDance's marquee international app, the short-form video platform TikTok, is still banned in India. And last month, the Indian government banned dozens more Chinese apps, citing national security concerns.