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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.

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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.

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Congress protests against Gyanesh Kumar, demands Election chief’s resignation

Congress workers took to the streets against Chief Election Commissioner Gyanesh Kumar, with protests and demonstrations held over the party’s allegations concerning the Election Commission.

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Congress stepped up its campaign against Chief Election Commissioner Gyanesh Kumar, with party workers taking to the streets and demanding his resignation amid the ongoing row over the Election Commission.

The protests followed repeated criticism by Congress leaders of the poll panel and its functioning. The party has alleged irregularities in the electoral process and has sought accountability from the Election Commission.

Congress leaders have also targeted Gyanesh Kumar personally, with Rahul Gandhi among those calling for the Chief Election Commissioner to step down.

Congress takes protest to streets

Congress workers staged demonstrations in different places as part of the party’s campaign against the Election Commission.

The protests featured sharp symbolism, including masks and handcuffs, as Congress sought to highlight its allegations against the poll panel and demand action against Gyanesh Kumar.

The demonstrations are part of a wider confrontation between the Congress and the Election Commission over issues related to electoral rolls and the conduct of elections.

Congress demands Gyanesh Kumar’s resignation

The Congress has repeatedly demanded the resignation of Gyanesh Kumar, accusing the Election Commission of failing to adequately address the concerns raised by the opposition party.

Rahul Gandhi has also stepped up his criticism of the poll panel. In a statement on Thursday, he demanded that Gyanesh Kumar resign and alleged that the Election Commission had acknowledged the issue of “vote theft”. These are allegations made by the Congress and should not be treated as an established finding unless confirmed by the relevant authority.

The dispute comes amid a broader political debate over electoral rolls, voter verification and the functioning of the Election Commission.

Election Commission under opposition scrutiny

The Congress has intensified its campaign against the poll body in recent weeks, with party leaders repeatedly questioning its decisions and procedures.

The Election Commission, meanwhile, has maintained that India’s electoral process is conducted according to the Constitution, electoral laws and prescribed procedures. Chief Election Commissioner Gyanesh Kumar has previously defended the integrity of the electoral system and rejected claims that electronic voting machines can be remotely hacked.

The latest protests add to the continuing political confrontation over the Election Commission and the opposition’s demands concerning the poll panel’s functioning.

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Assam makes Muslim marriage registration compulsory under new rules

Assam has approved rules for compulsory registration of Muslim marriages, with couples able to register through government marriage registrars.

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The Assam Cabinet has approved the Assam Muslim Marriage Registration (Compulsory) Rules, 2026, establishing the procedure for mandatory registration of Muslim marriages in the state.

The rules operationalise the Assam Compulsory Registration of Muslim Marriages and Divorces Act, 2024, which replaced the earlier Assam Muslim Marriages and Divorces Registration Act, 1935.

Who will register Muslim marriages in Assam?

Chief Minister Himanta Biswa Sarma said Muslim couples will now be able to register their marriages with government marriage registrars.

The government had earlier decided that kazis would not register Muslim marriages under the new system, but there was uncertainty over who would carry out the registration. The newly approved rules establish the registration mechanism through marriage registrars.

Sarma said that if the number of applications becomes large, the government could give marriage-registration powers to officers at the panchayat level so that applicants do not face difficulties.

What does the 2024 law say?

The 2024 Act made the registration of Muslim marriages and divorces with the government mandatory. It also prohibits registration of marriages that do not meet the legally prescribed minimum age requirements.

The law specifies the minimum marriage age as 18 years for females and 21 years for males.

The legislation was introduced by the Assam government with the stated objective of curbing child marriage and ending the earlier kazi-based registration system.

Under the previous 1935 law, marriage registration was conducted through kazis and was not compulsory. The earlier system also allowed registration involving minors in certain circumstances, while the new law does not permit such registration.

Registration timeline and penalties

The 2024 legislation provides that Muslim marriages should be registered within 30 days of the marriage. It also provides for registration of divorces within one month of their occurrence.

The law also contains penalties for violations. Producing fake or forged certificates can attract imprisonment of up to two years, a fine of up to Rs. 10,000, or both, along with action under relevant provisions of the Bharatiya Nyaya Sanhita, 2023.

Registering a marriage in violation of the law can attract imprisonment of up to one year and a fine of up to Rs. 50,000.

The Assam Cabinet’s approval of the 2026 rules provides the administrative framework for implementing the compulsory registration system.

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Trump-Xi Summit: Trade, Taiwan and AI among key takeaways

Trade, Taiwan, artificial intelligence and strategic rivalry were among the key issues highlighted during Donald Trump’s summit with Xi Jinping in Washington.

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Trump-Xi Summit

US President Donald Trump and Chinese President Xi Jinping met at the White House amid discussions on trade, artificial intelligence and the broader strategic relationship between the United States and China.

The summit came as Washington and Beijing continued to navigate disagreements over tariffs, Chinese purchases, rare-earth supplies, technology restrictions and Taiwan.

Here are five key takeaways from the Trump-Xi summit.

Trade truce gets an extension

The United States and China agreed to extend their trade truce by two months, giving both sides additional time for negotiations.

US Treasury Secretary Scott Bessent said the extension would provide Washington and Beijing more time to work on economic issues. However, several major questions remain part of the negotiations, including tariffs, Chinese purchases, rare-earth supplies and technology restrictions.

Bessent said China was meeting its earlier commitment to buy 25 million tonnes of US soybeans but was behind its pledge to purchase $17 billion worth of other agricultural goods.

US officials have also said that Chinese rare-earth deliveries were falling short.

Taiwan remains a major point of tension

Taiwan was another important issue during the discussions.

Xi Jinping pressed Trump on Taiwan and urged the United States to handle the issue with “prudence”, according to China’s official news agency. Its English-language service also said Xi hoped Washington would oppose Taiwanese independence.

The report noted that the US has traditionally said it does not support Taiwanese independence, while avoiding an explicit statement that it opposes it.

There was no immediate White House readout of the exchange on Taiwan.

Trump and Xi differ on AI

Artificial intelligence was another area where the two leaders expressed different positions.

Trump has said he wants to avoid new AI guardrails and instead rely on the US Department of Justice. He has also maintained that China shares this approach.

Xi, however, said the United States and China have both the capability and responsibility to develop and manage AI for good.

He said AI development should remain under human control and serve people’s well-being.

The contrasting positions underline the importance of AI and technology in the broader US-China relationship.

Strategic rivalry remains a concern

Xi also referred to the “Thucydides Trap”, a theory associated with the risk of conflict between a rising power and an established one.

He argued that competition between the United States and China should be about catching up rather than a contest in which one side must defeat the other.

Xi said the risks could be overcome and called for regular military dialogue and stronger mechanisms to prevent crises.

Trump, meanwhile, highlighted areas where the two countries could cooperate, referring to their shared wartime history and common interests.

Summit also featured elaborate ceremony

The White House visit was accompanied by an elaborate display of ceremony.

The programme included military performances, fighter jets and bombers flying overhead, as well as the recently redesigned South Lawn and a large helipad bearing the presidential seal.

The highly publicised setting contrasted with the unresolved differences between Washington and Beijing on trade, Taiwan, technology and strategic issues.

The summit therefore highlighted both the effort to maintain dialogue between the two powers and the significant issues that remain unresolved.

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