The Chinese tech companies are being subjected to increasing government regulation. As a consequence, the market capitalisation of Big Tech in China is declining.

The issues for which there is a crack down are related to violation of anti-trust laws, unfair market practices, user data privacy and wrong use of data by the tech companies.

India in 2020, banned many Chinese apps such as TikTok and PubG which have millions of users. This triggered a worldwide concern about the security threats from the Chinese Big Tech. The Trump administration too took similar action. The Biden administration lifted the blanket ban, but asked the tech companies to follow a framework of compliance with data security norms and maintaining user privacy.

There was lack of data protection and privacy in China. The Chinese authorities were under international pressure on these counts. They felt the Chinese companies must take corrective steps. They exercised regulatory action. There is a paradigm shift in the technology sector. Now only those companies who comply with data protection and user privacy norms will be successful. These are the days of ethical tech.

India has a good record of regulating the tech companies. Foreign firms may find India an attractive destination for investment.