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Chinese investors in Indian unicorns: India sitting on data trap

While the government did see the threat from the Chinese apps, it does not see any from investors from China accessing data of Indian consumers from their Indian partners.

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By Sambhav Sharma

With the ban on some 220 Chinese apps, India may have protected its sovereignty and integrity from prying Chinese eyes. But authorities, however, don’t seem to have a clue in protecting the country’s data from Chinese investors, who continue to invest in Indian apps and unicorns and gain access to data of users, who are predominantly Indian citizens. Besides the agreements between the investors and the apps are not in public forums for analysts to study it.

While the government did see the threat from the Chinese apps, it does not see any from investors from China accessing data of Indian consumers from their Indian partners. It is high time the government answer this question: Should the government continue to allow Chinese investors in Indian unicorns without adequate norms for protecting Indian users’ data?

During 2016-19, Chinese investments in Indian start-ups have grown 12 times. An India Today report  listed the Alibaba Group’s strategic investments in Indian unicorns, starting from Big Basket ($250 million), Paytm.com ($400 million), Paytm Mall ($150 million), Zomato ($200 million) to Snapdeal ($700 million). Tencent, the other Chinese company, has invested in Indian firms like Byju’s ($50 million), Flipkart ($300 million), Hike Messenger ($150 million), Ola ($500 million) and Swiggy ($500 million). The investment from China seems to have fallen in 2020 following changes in the foreign direct investment rules that made prior government approval mandatory for investments from countries that share a land border with India. The Alibaba Group is among those hit by the new norms and is unlikely to sign fresh deals to fund Indian companies.

tiktok

A recent Indian Express report said a Shenzen-based tech company with links to the Chinese government and Chinese Communist Party is monitoring 10,000 individuals and organisations including key decision-makers like the Prime Minister, Chief of Defence Staff among others.

Given the ban on apps because they were a threat to security, the government is yet to formulate full-fledged data security norms. Cyberlaw expert Pavan Duggal, who spoke to APN, said, “Chinese apps like Tiktok, Shareit were a great threat to Indian data because these apps, compared to other apps, were asking for a lot of permissions. They were generating and collecting a lot of personal data of users and sending them to servers in China which could be analysed using artificial intelligence and machine learning.”

“Any and every server anywhere is vulnerable to a potential data breach. But servers in China are highly vulnerable as China has a national cybersecurity law from 2017 and under this law, any information to servers, systems located within China could be automatically accessed or shared with the Chinese government. Hence, data on Chinese servers is not at all safe,”

-Duggal

“On the other hand, India does not have any law on data protection. The Personal Data Protection Bill, 2019 is pending for consideration of the joint parliamentary committee. As far as data is concerned, India is a leaking ecosystem,” he said.

Economist Akash Jindal said India needs to curb Chinese investment because it’s a threat to national security. When asked about the economic impact of curbing Chinese FDI, he said if we are able to market ourselves well, we would be in a position to solicit the same FDI from other countries. 

On the security implications of  a potential data breach in apps/companies associated with Chinese investors, defence expert PK Sehgal said not only does India need to ban apps linked to China, but “we also need to ban companies like Tencent, Alibaba who are stealing our data”. The moment India does it, other countries will follow, he said.

Talking about modern warfare, he said predictability plays an important role in warfare and data can help to predict the enemy, hence, security implications of a data breach are manifold.  Data help to carry out psycho-analysis of important personalities and how leaders are going to react in a certain situation, he said. Sehgal emphasised on the need to take cyber warfare more seriously.

“India needs to secure data as the Chinese are in a position to create chaos and mayhem in India. Through the use of artificial intelligence, China can refine data and can impact India’s financial sector, railways, power grid. Before a single bullet is fired, there may be chaos and mayhem in India,” he added.

He emphasised on the use of information, misinformation, disinformation, propaganda as the tools of modern war. Last year, an Army jawan was honey-trapped via social media and ended up sharing confidential information with Pakistani agencies. When asked about the laws/guidelines for defence personnel using apps, Sehgal added the Defence Ministry has very clear instructions that defence personnel are not supposed to have these apps, but it is tough to monitor each jawan. Jawans are the most vulnerable for a potential honey trap, Sehgal said.

Read Also: Schools set to restart partial work in a few states

Given this situation, India needs to come up with a clear and cogent policy to deal with data localisation and specific guidelines so that the data has to be dedicatedly protected, otherwise Chinese investors could impact Indian security, sovereignty and integrity.

India News

Parliament winter session: Government lists 15 bills, including Waqf bill

The session will kick off on November 25 and conclude on December 20.

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The government has listed five new ones and one to amend the contentious Waqf law out of 15 bills for the winter session of Parliament. The session will kick off on November 25 and conclude on December 20.

The government has introduced five new bills, including the Coastal Shipping Bill, 2024, which aims to promote coasting trade and increase the participation of Indian-flagged vessels owned and operated by Indian citizens for both national security and commercial purposes.

Another significant legislation that will be introduced by the government is the Indian Ports Bill, 2024. This bill is designed to implement measures for the conservation of ports, enhance security, and manage pollution, ensuring compliance with India’s international obligations and statutory requirements.

Additionally, the government plans to introduce the Merchant Shipping Bill, 2024, which aims to meet India’s obligations under maritime treaties and support the development of Indian shipping while ensuring the efficient operation of the Indian mercantile marine in a way that serves national interests.

Pending legislation includes the Waqf (Amendment) Bill, which is awaiting consideration and passage after the joint committee of both Houses submits its report to the Lok Sabha. The committee is expected to report by the end of the first week of the winter session.

Currently, there are eight bills, including the Waqf (Amendment) Bill and the Mussalman Wakf (Repeal) Bill, pending in the Lok Sabha, while two additional bills are in the Rajya Sabha.

Furthermore, the government has also listed the Punjab Courts (Amendment) Bill for introduction, consideration, and passage, which seeks to increase the pecuniary appellate jurisdiction of Delhi district courts from Rs 3 lakh to Rs 20 lakh.

The Merchant Shipping Bill, along with the Coastal Shipping Bill and the Indian Ports Bill, is slated for introduction and eventual passage.

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International Criminal Court issues arrest warrant against Israel PM Benjamin Netanyahu over war crimes

The court accused Prime Minister Netanyahu and Defence Minister Gallant of crimes against humanity, including murder, persecution, inhumane acts, and the war crime of starvation as a method of warfare.

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International Criminal Court issues arrest warrant against Israel PM Benjamin Netanyahu over war crimes

The International Criminal Court (ICC) today issued arrest warrants for Israeli Prime Minister Benjamin Netanyahu and former Defence Minister Yoav Gallant over alleged war crimes and crimes against humanity.

The court accused Prime Minister Netanyahu and Defence Minister Gallant of crimes against humanity, including murder, persecution, inhumane acts, and the war crime of starvation as a method of warfare. The leaders allegedly restricted essential supplies such as food, water, and medical aid to civilians in Gaza, resulting in severe humanitarian crises and deaths, including among children.

Last year in October, Israel had launched attacks on Gaza in retaliation for the surprise attack by Hamas. The Israel-Hamas war has led to the death of thousands of civilians, while lakhs have been displaced. The major infrastructures in Gaza, including hospitals and schools, were also destroyed as Israel vowed to wipe out Hamas.

The International Criminal Court stated that it found reasonable grounds to believe the accused intentionally targeted civilians and limited medical supplies, forcing unsafe medical procedures, which caused immense suffering. This ruling was based on the findings from at least October 8, 2023 until at least May 20, 2024.

The court remarked that it has assessed that there are reasonable grounds to believe that PM Netanyahu and Defence Minister Gallant bear criminal responsibility as civilian superiors for the war crime of intentionally directing attacks against the civilian population of Gaza.

Furthermore, it also noted that the lack of food, water, electricity and fuel, and medical supplies created conditions of life calculated to bring about the destruction of part of the civilian population in Gaza, leading to death of civilians, including children due to malnutrition and dehydration.

Additionally, the International Criminal Court dismissed two challenges by Israel against its jurisdiction in the situation in the State of Palestine.

Notably, Israel had contested the ICC’s jurisdiction, claiming it could not be exercised without Israel’s consent. Nonetheless, the Chamber ruled that the Court has jurisdiction based on Palestine’s territorial scope, including Gaza, the West Bank, and East Jerusalem. It further noted that Israel’s objections were premature, as jurisdictional challenges under the Rome Statute can only be made after an arrest warrant is issued.

Reportedly, Israel had also requested a fresh notification regarding the investigation, started in 2021. Denying the request, the court stated that Israel had earlier declined to request a deferral, making additional notifications unnecessary.

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Yogi Adityanath accords tax-free status to Sabarmati Report film in Uttar Pradesh

Earlier, Prime Minister Narendra Modi and Home Minister Amit Shah have also praised this film.

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Uttar Pradesh Chief Minister Yogi Adityanath on Thursday accorded a tax-free status to ‘The Sabarmati Report’ film, based on the train burning incident at Godhra in Gujarat in 2002, in the state.

The announcement was made after Chief Minister Adityanath attended the screening of Vikrant Massey and Raashii Khanna-starrer ‘The Sabarmati Report’ in Lucknow with the film’s cast.  

Speaking to reporters, actor Vikrant Massey thanked the Uttar Pradesh Chief Minister for making ‘The Sabarmati Report’ film tax-free in the state. “I want to thank Yogi Adityanath ji. This is an important film and I appeal to everyone to go and watch this film,” he said.

Chief Minister Adityanath along with many of his cabinet colleagues watched the film ‘The Sabarmati Report’ under a special screening at a cinema hall in the capital, said a spokesperson of the state government.

Several people associated with the film unit were also present on the occasion. Later the chief minister announced to make this film tax-free in UP.

The BJP-ruled states have been praising the makers of The Sabarmati Report, claiming the team has tried to bring out this truth in front of the people of the country through the film.

The saffron party is appealing to people to watch this film and try to get closer to the truth of Godhra.

Uttar Pradesh becomes the sixth BJP-ruled state after Haryana, Rajasthan, Chhattisgarh, Madhya Pradesh and Gujarat to declare lead actors Vikrant Massey and Raashii Khanna’s film tax-free.

Adityanath said along with identifying the faces of those who are conspiring against the country for political gains, there is also a need to expose them. The film team has discharged its responsibilities to expose the truth, he said, adding an attempt has been made to bring the real truth in front of the country in a big way through the film.

The Sabarmati Report is said to be based on the incident of setting fire to a train full of ‘karsevaks’ in Godhra on February 27, 2002, killing 90 devotees. After this incident, communal riots broke out in Gujarat. Earlier, Prime Minister Narendra Modi and Home Minister Amit Shah have also praised this film.

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