Chinese Companies Again Under Govt Radar For Collecting Personal Data Of Indians

SUMMARY

The beneficiaries from such practice were senior members of the Chinese Communist Party (CCP)

Such reports raise more security concerns as Chinese companies are under obligation to share data with the government if required

The companies which have come under scrutiny were investigated by the Indian government for tax evasions and other financial malpractices

Chinese companies have been allegedly gathering the personal data of a large number of Indians. Reportedly, the beneficiaries from such practice were senior members of the Chinese Communist Party (CCP).

Such reports raise more security concerns as Chinese companies are under obligation to share data with the government if required, ET reported. Moreover, many of these companies are somehow linked to the CCP members.

The companies which have come under scrutiny were investigated by the Indian government for tax evasions and other financial malpractices, said the ET report.

It is to be noted here that the Registrar of Companies (RoC) has set up cells across India to investigate shell companies involving Chinese nationals who are linked with apps promoting betting and dating apps.

While the digital sector in India has grown exponentially over the past few years, Chinese companies getting easy access to Indian data of individuals has also grown simoultaneously. As many Indians used a number of Chinese apps across sectors.

Recently, the Indian government reportedly notified that Chinese nationals would require necessary security clearance to be appointed as directors on the board of Indian companies and startups.

The government amended the guidelines after receiving reports that Chinese companies were registering companies in other nations such as in the US and Cayman Islands and then investing in the Indian businesses to escape government’s restrictions.

According to the latest ET report, Chinese telecom companies failed to comply with the Indian law as they tried hiding transactions with their associate companies. In addition, a few chinese firms in India have been found in export-import violations and GST-related manipulations.

The Indian units of ZTE Corp and Vivo are also being reportedly investigated for alleged financial impropriety as the Ministry of Corporate Affairs (MCA) received complaints on several violations such as fraud.

Further, for the last two years, the Indian government has taken several steps against Chinese firms operating in India or companies with Chinese links. The Indian government has so far banned 277 China-originated apps operating in the country since June 2020.

Add to it, recently, Chinese tech giant ByteDance exited VerSe Innovation after selling its entire stake to new investors Canada Pension Plan Investment Board (CPPIB) and Ontario Teachers’ Pension Plan Board (OTPPB).