After India Bans PUBG, Tencent Loses 42 Billion USD In Market Value

After the stern decision from the Indian government of banning PUBG Mobile, the most popular multiplayer game across the nation. In just two days, Tencent lost around 42 billion USD. Moreover, they are currently facing the most significant loss of all the time. As for China, this loss is the second largest one after that of the WeChat; for this, the US passed an executive order, leading to a loss of 66 billion USD. However, they recovered from the earlier one in just two weeks. Previously, on June 29, when India banned TikTok, Tencent lost 6 billion USD.

With the growing political and military tensions between India and China, India is continuously targeting the Chinese investments and tech companies. All this started with the Galwan Valley clash between Indian and Chinese troops.

Following the clash, there were 20 deaths among the Indian soldiers and 35 among the Chinese ones. Even though India said that there would no effect on the trade with the growing military disputes, the nation took several economic actions against the companies based out of China. India banned Chinese products in the name of additional inspection. With this, the tension escalates even further.

June 29

Previously, on June 29, India banned 59 apps including the most popular ones like TikTok, Clash of Kings, and many more; and now on September 2, the government again announced banning more apps, including 118 of other top Chinese ones in the name of security actions. The recently banned apps included the most popular and all-time favourite PUBG Mobile too. 

According to the government, the Indian Ministry of Electronics & IT said the apps were misapply and were transferring the data of the users to the external, foreign servers.

The response of China on the loss

The Commerce Ministry of China opposed the ban and mentioned that it hinders the interests of the Chinese services and investors and that India must correct this issue. Tencent said that they always take privacy and security seriously and have stick to all the laws of India regarding data protection and security. 

Tencent also added that they would soon converse with the higher authorities of India and clarify everything. They strive to setup safe policies for Data protection and ensure the availability of their apps for the Indians, keeping their privacy as a priority.

There are also more revelations on India and China to hold talks in Moscow, and that Rajnath Singh, the Defence Minister of India, will meet Wei Fenghe, the Chinese counterpart. Also, reports stated that the Chinese call this meeting.

Un-surety in Indian Esports Community

Indian Esports industry expanded with PUBG Mobile’s success and user base, and with the banning of it, there is growing uncertainty in the sector. It was because of the PUBG Mobile’s popularity that India received several domestic and foreign investments for the Esports sector. Since the last year, the growth in the industry has been higher than ever. With the development, India experienced the formation of producers, marketing agencies, talent managers, and designers, and all of them will now be immensely affected by the disruption in the user base caused by the ban.

With the ban, TSM said, they are sorry for the banning news and hope for the situation to be set on soon for the interests of the fans and the players of PUBG. They also added that there is a search for multiple options for the team.

Another investor, Nova, is also affected by the ban, and its CEO Oktay Olcen said,

They had a bigger plan of investments for about 3 more years and come up with gaming events for the Indians. However, the plans are now suspended due to the banning of actions. He added that the government of India must understand the cultural aspect of gaming and esports. This was the best opportunity to seek higher investments and help the Indians to make their stand in the Esports sector. This banning crashed the youngster’s dreams to be the players or the streamers.

Nova Official Website

By Tanya Mishra

A Writer 'All Ghillied Up' as a Gamer.

Leave a Reply

Your email address will not be published. Required fields are marked *