The global trade landscape is shifting again, as the United States intensifies tariffs on India and Chinese goods and technology. This move is prompting both India and China to re-examine their bilateral relationship, raising a critical question: Will India soften or revive its stand on Chinese tech giants like Huawei and TikTok?
The Backdrop – Why India Banned TikTok and Restricted Huawei
In June 2020, following border tensions in Ladakh, India banned TikTok along with more than 250 other Chinese apps, citing data privacy, national security, and sovereignty concerns.
Around the same time, Huawei, once seen as a potential partner in India’s 5G rollout, faced increasing restrictions. Telecom operators were nudged towards “trusted sources” for network gear, effectively sidelining Huawei and ZTE. Both Ericsson and Nokia benefitted from the move.
These decisions aligned with global sentiment, particularly from the US and its allies, who warned of the security risks posed by Chinese technology firms.
The US Tariff Factor – A Possible Opening for China in India?
With Washington imposing steeper tariffs on Chinese exports, Beijing is seeking to diversify trade relationships and reduce dependence on the US market. India, being a fast-growing economy with a massive consumer base, becomes an attractive alternative for Chinese businesses. India is facing pressure from the United States to reduce purchase of oil from Russia. The United States has already imposed 50 percent tariffs on India.
China may extend investment incentives, technology collaborations, and competitive pricing to Indian partners in sectors like electronics, EVs, and telecommunications. This could lead to increased lobbying for a re-entry of its tech platforms and hardware players.
Huawei, with its extensive R&D capabilities, can contribute to India’s 5G expansion, enterprise connectivity, and AI-enabled services, offering affordable yet advanced options that benefit businesses and consumers alike.
TikTok’s previous stint in India transformed the video content creation landscape, enabling millions of Indians — from rural influencers to urban artists — to reach national and global audiences. Its return could reignite this creator economy, unlocking new revenue streams for video developers, brand partnerships, and digital entrepreneurship opportunities.
With India’s short-video market projected to grow exponentially, TikTok’s advanced recommendation algorithms, robust monetization features, and global reach could complement domestic platforms and create a richer content ecosystem.
Opportunities for Collaboration and Growth
A re-entry, especially under a framework of data localization, transparency, and compliance with Indian regulations, would address earlier concerns while fostering trust.
By engaging with diverse global technology players, India can enhance its position as a neutral, innovation-driven digital hub. Healthy competition encourages better pricing, faster innovation, and broader consumer choice. Huawei’s telecom network expertise and TikTok’s digital platform prowess could both contribute to India’s economic growth story in meaningful ways.
A Welcome Move for Industry
For Indian telecom operators, Huawei’s affordable yet advanced solutions could mean faster rural connectivity and lower infrastructure costs. For the creative sector, TikTok’s return could reignite opportunities for millions of content creators and small businesses. Both cases translate into jobs, investment, and skill-building — areas that align with India’s long-term development goals.
Baburajan Kizhakedath