Categories
Tech

Tencent to consolidate China's Twitch-like services Douyu and Huya – sources

HONG KONG China’s biggest video game and social media company Tencent Holdings is driving a merger of Twitch-like game streaming platforms Douyu and Huya, as it seeks to consolidate its dominance in the industry.

Tencent, which is already Huya’s biggest shareholder and also owns over a third of Douyu, has been pushing the deal for months, four sources familiar with the situation told Reuters.

Tencent seeks to control or at least become the biggest shareholder of the merged entity, the sources added. Huya and Douyu are ranked No. 1 and No. 2, respectively, as China’s most popular video game streaming sites, where users flock to watch esports tournaments and follow professional gamers.

Tencent is gradually pushing to consolidate some businesses between Huya and DouYu, one source said.

Both Huya and DouYu are listed in the United States, with a combined market capitalisation of $10 billion. In April, Tencent became the biggest shareholder of Huya after exercising its option to acquire additional shares, clearing a major impediment to the merger.

A merger of the two, with a combined market share of more than 80% in the country according to data from MobTech, would lower costs and ease cut-throat competition among them.

The duo have been locked in a fierce rivalry that has seen them offer signing fees and contracts worth tens of millions of yuan to sign streamers.

The deal would also help Tencent fend off rising challengers like ByteDance, the owner of TikTok which is working on several full-fledged games simultaneously.

Also Watch

Mumbai Police Issue Press Note On Disha Salian, Cops Appeal For Any Information On Disha’s Death

A merger could also involve eGame, Tencent’s own streaming site and ranked No. 4 in the country, said one of the sources. The merger, first reported by domestic media The Beijing News in June, is still at an early stage, said the sources.

Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor


Array
(
[videos] => Array
(
[0] => Array
(
[id] => 5f2a8015cc17de12942f1a96
[youtube_id] => IjT3RATxbJ8
Tencent to consolidate China's Twitch-like services Douyu and Huya – sources => Mumbai Police Issue Press Note On Disha Salian, Cops Appeal For Any Information On Disha’s Death
)

[1] => Array
(
[id] => 5f2a7f61cc17de12942f1a75
[youtube_id] => Z4HaXhz_D6o
Tencent to consolidate China's Twitch-like services Douyu and Huya – sources => PM Modi: The Blessings Of Lord Ram Are Always There With The Poor & Helpless
)

)

[query] => https://pubstack.nw18.com/pubsync/v1/api/videos/recommended?source=n18english&channels=5d95e6c378c2f2492e2148a2,5d95e6c778c2f2492e214960&categories=5d95e6d7340a9e4981b2e10a&publish_min=2020-08-02T15:16:02.000Z&publish_max=2020-08-05T15:16:02.000Z&sort_by=date-relevance&order_by=0&limit=2
)

Categories
Tech

ShareChat in talks with Sequoia, others to raise up to $200 million: sources

NEW DELHI Indian content-sharing platform ShareChat is in early-stage talks with U.S.-based Sequoia Capital and some other investors to raise up to $200 million, which could value the company at over $1 billion, three sources aware of the matter told Reuters.

ShareChat has appointed JPMorgan to advise on the new fund raising which it expects to complete before the end of the year, said the sources, who declined to be named as the talks were private.

The discussions come as Indian apps such as ShareChat are seeing a popularity surge after New Delhi in June banned 59 Chinese origin apps including ByteDance’s TikTok following a border clash between the two countries.

ShareChat, in which Twitter last year invested an undisclosed amount, declined to comment. It has 140 million monthly active users in India.

JPMorgan declined to comment, and a spokeswoman for Sequoia in India did not respond to Reuters questions.

ShareChat allows users to post content in 15 Indian languages and after TikTok was banned, it launched a similar short-video sharing app named Moj which has clocked up more than 50 million downloads so far.

The money raised by ShareChat will be used to grow its video app further, bring more content creators to its platform and raise its marketing spend, said the first source.

“Investor interest in the company (ShareChat) is strong and 2020 may end up being their best year,” the source added.

ShareChat is in the process of completing a separate, smaller fund raise of $50-$70 million, mainly from existing investors such as Lightspeed Venture Partners, the second source said.

Lightspeed did not immediately respond to a request for comment.

Also Watch

IMD Issues Red Alert In Mumbai For 48 Hours As Heavy Rains Continue In The City | CNN News18

Other home-grown TikTok alternatives such as Chingari and Mitron are also finding favour with users in India. Facebook’s Instagram also last month introduced a new video sharing feature called “Reels” on its platform in India.

Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor


Array
(
[videos] => Array
(
[0] => Array
(
[id] => 5f2955f559a51412a2776398
[youtube_id] => A0DENDDqjP0
ShareChat in talks with Sequoia, others to raise up to $200 million: sources => IMD Issues Red Alert In Mumbai For 48 Hours As Heavy Rains Continue In The City | CNN News18
)

[1] => Array
(
[id] => 5f295055cc17de12942ef936
[youtube_id] => V-N5cV_Ju08
ShareChat in talks with Sequoia, others to raise up to $200 million: sources => Baba Ramdev Speaks To CNN News18, Says ‘proud To Be Part Of This Historic Day’ | CNN News18
)

)

[query] => https://pubstack.nw18.com/pubsync/v1/api/videos/recommended?source=n18english&channels=5d95e6c378c2f2492e2148a2,5d95e6c778c2f2492e214960&categories=5d95e6d7340a9e4981b2e10a&publish_min=2020-08-01T18:19:09.000Z&publish_max=2020-08-04T18:19:09.000Z&sort_by=date-relevance&order_by=0&limit=2
)

Categories
Tech

Trump to Give TikTok's Chinese Owner 45 Days to Agree Sale, Say Sources

Image for Representation. (Picture Source: PTI)

Image for Representation. (Picture Source: PTI)

Banning TikTok would alienate many of its young users ahead of the US presidential election in November, and would likely trigger a wave of legal challenges.

  • Reuters WASHINGTON
  • Last Updated: August 3, 2020, 10:00 PM IST

President Donald Trump has agreed to give China’s ByteDance 45 days to negotiate a sale of popular short-video app TikTok to Microsoft Corp, two people familiar with the matter said on Sunday.

US officials have said TikTok under its Chinese parent poses a national risk because of the personal data it handles. Trump said on Friday he was planning to ban TikTok in the United States after dismissing the idea of a sale to Microsoft. [nL2N2F21NE]

But following a discussion between Trump and Microsoft CEO Satya Nadella, the Redwood, Washington-based company said in a statement on Sunday that it would continue negotiations to acquire TikTok from ByteDance, and that it aimed to reach a deal by Sept. 15.

It was not immediately clear what changed Trump’s mind. Banning TikTok would alienate many of its young users ahead of the US presidential election in November, and would likely trigger a wave of legal challenges. Several prominent Republican lawmakers put out statements in the last two days urging Trump to back a sale of TikTok to Microsoft. [L1N2F4087]

“A win-win in the making,” Republican Senator Lindsey Graham tweeted in response to Trump’s new stance on Sunday.

The negotiations between ByteDance and Microsoft will be overseen by the Committee on Foreign Investment in the United States (CFIUS), a US government panel that has the right to block any agreement, according to the sources, who requested anonymity ahead of a White House announcement. Microsoft cautioned in its statement that there is no certainty a deal will be reached.

“Microsoft fully appreciates the importance of addressing the President’s concerns. It is committed to acquiring TikTok subject to a complete security review and providing proper economic benefits to the United States, including the United States Treasury,” Microsoft said in a statement.

ByteDance and the White House did not immediately respond to requests for comment.

As relations between the United States and China deteriorate over trade, Hong Kong’s autonomy, cyber security and the spread of the novel coronavirus, TikTok has emerged as a flashpoint in the dispute between the world’s two largest economies.

Microsoft, which also owns professional social media network LinkedIn, would become a major competitor to social media giants such as FaceBook Inc and Snap Inc were its bid for TikTok to succeed.

Under the proposed deal, Microsoft said it would take over TikTok’s operations in the United States, Canada, Australia and New Zealand. It said it would ensure that all private data of TikTok’s American users is transferred to and remains in the United States.

Microsoft may invite other American investors to acquire minority stakes in TikTok, the company added. About 70% of the outside capital ByteDance has raised has come from the United States.

It is not clear how much Microsoft could pay for TikTok. Reuters reported last week that ByteDance’s valuation expectations for the app exceeded $50 billion, although US pressure to divest it could lower that price tag. [nL2N2F00J5]

A key issue in the negotiations will be separating TikTok’s technology from

ByteDance’s infrastructure and access, to alleviate US concerns about the integrity of personal data. ByteDance owns a Chinese short video app called Douyin that was based on the same code used for TikTok.

One idea under consideration is to give Microsoft and ByteDance a transition period to develop technology for TikTok that will be completely separate from ByteDance, one of the sources said.

APP SCRUTINY

The United States has been increasingly scrutinizing app developers over the personal data they handle, especially if some of it involves US military or intelligence personnel. Ordering the divestment of TikTok would not be the first time the White House has taken action over such concerns.

Earlier this year, Chinese gaming company Beijing Kunlun Tech Co Ltd sold Grindr LLC, a popular gay dating app it bought in 2016, for $620 million after being ordered by CFIUS to divest.

In 2018, CFIUS forced China’s Ant Financial to scrap plans to buy MoneyGram International Inc over concerns about the safety of data that could identify US. citizens.

ByteDance was valued at as much as $140 billion earlier this year when one of its shareholders, Cheetah Mobile CMCM.N, sold a small stake in a private deal, Reuters has reported. The start-up’s investors include Japan’s SoftBank Group Corp.


Array
(
[videos] => Array
(
)

[query] => https://pubstack.nw18.com/pubsync/v1/api/videos/recommended?source=n18english&channels=5d95e6c378c2f2492e2148a2,5d95e6c278c2f2492e214884,5d96f74de3f5f312274ca307&categories=5d95e6d7340a9e4981b2e10a&query=Microsoft+Tik+Tok%2Ctik+tok+ban%2CTik+Tok+Ban+US%2Ctrump+tik+tok%2CUS+Tik+Tok+Ban&publish_min=2020-07-31T07:24:10.000Z&publish_max=2020-08-03T07:24:10.000Z&sort_by=date-relevance&order_by=0&limit=2
)

Categories
Tech

Exclusive: TikTok's Chinese owner offers to forego stake to clinch U.S. deal – sources

NEW YORK/WASHINGTON China’s ByteDance has agreed to divest the U.S. operations of TikTok completely in a bid to save a deal with the White House, after President Donald Trump said on Friday he had decided to ban the popular short-video app, two people familiar with the matter said on Saturday.

U.S. officials have said TikTok under its Chinese parent poses a national risk because of the personal data it handles. ByteDance’s concession will test whether Trump’s threat to ban TikTok is a negotiating tactic or whether he is intent on cracking down on a social media app that has up to 80 million daily active users in the United States.

Trump told reporters onboard Air Force One late on Friday that he would issue an order for TikTok to be banned in the United States as early as Saturday. “Not the deal that you have been hearing about, that they are going to buy and sell… We are not an M&A (mergers and acquisitions) country,” Trump said.

ByteDance was previously seeking to keep a minority stake in the U.S. business of TikTok, which the White House had rejected. Under the new proposed deal, ByteDance would exit completely and Microsoft Corp would take over TikTok in the United States, the sources said.

Some ByteDance investors that are based in the United States may be given the opportunity to take minority stakes in the business, the sources added. About 70% of ByteDance’s outside investors come from the United States.

The White House declined to comment on whether Trump would accept ByteDance’s concession. ByteDance in Beijing did not respond to a request for comment

Under ByteDance’s new proposal, Microsoft will be in charge of protecting all U.S. user data, the sources said. The plan allows for another U.S. company other than Microsoft to take over TikTok in the United States, the sources added.

Microsoft did not respond to a request for comment.

As relations between the United States and China deteriorate over trade, Hong Kong’s autonomy, cyber security and the spread of the novel coronavirus, TikTok has emerged as a flashpoint in the dispute between the world’s two largest economies.

ByteDance has been considering a range of options for TikTok amid U.S. pressure to relinquish control of the app, which allows users to create short videos with special effects and has become wildly popular with U.S. teenagers.

ByteDance had received a proposal from some of its investors, including Sequoia and General Atlantic, to transfer majority ownership of TikTok to them, Reuters reported on Wednesday. The proposal valued TikTok at about $50 billion, but some ByteDance executives believe the app is worth more than that.

ByteDance acquired Shanghai-based video app Musical.ly in a $1 billion deal in 2017 and relaunched it as TikTok the following year. ByteDance did not seek approval for the acquisition from the Committee on Foreign Investment in the United States (CFIUS), which reviews deals for potential national security risks. Reuters reported last year that CFIUS had opened an investigation into TikTok.

APP SCRUTINY

The United States has been increasingly scrutinizing app developers over the personal data they handle, especially if some of it involves U.S. military or intelligence personnel. Ordering the divestment of TikTok would not be the first time the White House has taken action over such concerns.

Earlier this year, Chinese gaming company Beijing Kunlun Tech Co Ltd sold Grindr LLC, a popular gay dating app it bought in 2016, for $620 million after being ordered by CFIUS to divest.

In 2018, CFIUS forced China’s Ant Financial to scrap plans to buy MoneyGram International Inc over concerns about the safety of data that could identify U.S. citizens.

ByteDance was valued at as much as $140 billion earlier this year when one of its shareholders, Cheetah Mobile, sold a small stake in a private deal, Reuters has reported. The startup’s investors include Japan’s SoftBank Group Corp.

Also Watch

India Records Single Highest Day Spike Of Over 57K COVID-19 Cases | Top 18 | CNN News18

The bulk of ByteDance’s revenue comes from advertising on apps under its Chinese operations including Douyin – a Chinese version of TikTok – and news aggregator app Jinri Toutiao, as well as video-streaming app Xigua and Pipixia, an app for jokes and humorous videos.

Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor


Array
(
[videos] => Array
(
[0] => Array
(
[id] => 5f25729159a51412a2770a12
[youtube_id] => cRo6zWcc3D4
Exclusive: TikTok's Chinese owner offers to forego stake to clinch U.S. deal – sources => India Records Single Highest Day Spike Of Over 57K COVID-19 Cases | Top 18 | CNN News18
)

[1] => Array
(
[id] => 5f256cf159a51412a277098a
[youtube_id] => jzYh5bqX8xI
Exclusive: TikTok's Chinese owner offers to forego stake to clinch U.S. deal – sources => Maharashtra & Bihar Govt Faceoff Over Sushant’s Death Probe | Top Stories At 6 PM | CNN News18
)

)

[query] => https://pubstack.nw18.com/pubsync/v1/api/videos/recommended?source=n18english&channels=5d95e6c378c2f2492e2148a2,5d95e6c778c2f2492e214960&categories=5d95e6d7340a9e4981b2e10a&publish_min=2020-07-29T20:06:10.000Z&publish_max=2020-08-01T20:06:10.000Z&sort_by=date-relevance&order_by=0&limit=2
)

Categories
Tech

Exclusive: ByteDance offers to forgo stake in TikTok to clinch U.S. deal – sources

Exclusive: ByteDance offers to forgo stake in TikTok to clinch U.S. deal - sources

China’s ByteDance has agreed to divest the U.S. operations of TikTok completely in a bid to save a deal with the White House, after President Donald Trump said on Friday he had decided to ban the popular shortvideo app, two people familiar with the matter said on Saturday.

  • Reuters
  • Last Updated: August 1, 2020, 7:04 PM IST

NEW YORK China’s ByteDance has agreed to divest the U.S. operations of TikTok completely in a bid to save a deal with the White House, after President Donald Trump said on Friday he had decided to ban the popular short-video app, two people familiar with the matter said on Saturday.

ByteDance was previously seeking to keep a minority stake in the U.S. business of TikTok, which the White House had rejected. Under the new proposed deal, ByteDance would exit completely and Microsoft Corp would take over TikTok in the United States, the sources said. Some ByteDance investors that are based in the United States may be given the opportunity to take minority stakes in the business, the sources added.

The White House did not respond to a request for comment on whether Trump would accept ByteDance’s concession. ByteDance in Beijing did not respond to a request for comment

Under ByteDance’s new proposal, Microsoft will be in charge of protecting all U.S. user data, the sources said. The plan allows for another U.S. company other than Microsoft to take over TikTok in the United States, the sources added.

Also Watch

Maharashtra & Bihar Govt Faceoff Over Sushant’s Death Probe | Top Stories At 6 PM | CNN News18

Microsoft did not respond to a request for comment.

Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor



Array
(
[videos] => Array
(
[0] => Array
(
[id] => 5f256cf159a51412a277098a
[youtube_id] => jzYh5bqX8xI
Exclusive: ByteDance offers to forgo stake in TikTok to clinch U.S. deal – sources => Maharashtra & Bihar Govt Faceoff Over Sushant’s Death Probe | Top Stories At 6 PM | CNN News18
)

[1] => Array
(
[id] => 5f256ad5fbcc0112a8a300a5
[youtube_id] => ajtUwBMFS-w
Exclusive: ByteDance offers to forgo stake in TikTok to clinch U.S. deal – sources => PM Modi: National Education Policy emphasizes on creating job creators rather than job seekers
)

)

[query] => https://pubstack.nw18.com/pubsync/v1/api/videos/recommended?source=n18english&channels=5d95e6c378c2f2492e2148a2,5d95e6c778c2f2492e214960&categories=5d95e6d7340a9e4981b2e10a&publish_min=2020-07-29T19:04:09.000Z&publish_max=2020-08-01T19:04:09.000Z&sort_by=date-relevance&order_by=0&limit=2
)

Next Story

Categories
Tech

Exclusive: ByteDance investors value TikTok at $50 billion in takeover bid – sources

NEW YORK/HONG KONG Some investors of TikTok’s parent company ByteDance seeking to take over the popular social media app are valuing it at about $50 billion, significantly more than peers such as Snap Inc, according to people familiar with the matter.

Beijing-based ByteDance is considering a range of options for TikTok amid pressure from the United States to relinquish control of the app, which allows users to create short videos with special effects and has become wildly popular with U.S. teenagers. The app’s success has helped turn ByteDance into one of only a handful truly global Chinese conglomerates.

The Committee on Foreign Investment in the United States (CFIUS), a U.S. government panel which reviews deals by foreign acquirers for potential national security risks, has raised concerns about the safety of the personal data that TikTok handles under its Chinese owner, Reuters has previously reported.

Privately held ByteDance has received a proposal from some of its investors, including Sequoia and General Atlantic, to transfer majority ownership of TikTok to them, the sources said. It has also fielded acquisition interest in TikTok from other companies and investment firms, the sources said.

The investors’ bid values TikTok at 50 times its projected 2020 revenue of about $1 billion, according to the sources. By comparison, Snap is valued at 15 times its projected 2020 revenue, at about $33 billion, according to data provider Refinitiv.

It is unclear whether ByteDance’s founder and CEO, Yiming Zhang, will be satisfied with the offer. ByteDance executives recently discussed valuation projections for TikTok that exceed $50 billion, one of the sources said.

TikTok is growing rapidly as it rakes in more cash from advertising, and its management team expects to achieve $6 billion in revenue in 2021, one of the sources said.

ByteDance, which owns other apps including TikTok’s Chinese counterpart, Douyin‎, has set itself a revenue target for 2020 of about 200 billion yuan ($28 billion), Reuters has previously reported.

ByteDance was valued at as much as $140 billion earlier this year when one of its shareholders, Cheetah Mobile Inc, sold a small stake in a private deal, one of the sources said.

If a deal for the whole of TikTok cannot be reached, ByteDance is exploring divesting only TikTok’s U.S. operations, one of the sources said. It is not clear what such a deal would be worth and what ties TikTok in the United States would maintain with its global operations.

There is no certainty that ByteDance will agree to any deal, the sources said. It is pushing ahead with structural changes that will further ringfence the U.S. business of TikTok from its global empire, the sources added. These changes could include a new holding company for TikTok and an independent board, one of the sources said, cautioning that no decision has been made. The company has already separated TikTok operationally from its other apps through dedicated teams.

The sources requested anonymity because the deliberations are confidential.

ByteDance and Sequoia declined to comment, while General Atlantic, Cheetah Mobile and a CFIUS spokeswoman did not respond to requests for comment.

TARGET OF U.S. LAWMAKERS

As relations between the United States and China deteriorate over trade, Hong Kong’s autonomy, cyber security and the spread of the novel coronavirus, TikTok has emerged as a flashpoint in the dispute between the world’s two largest economies.

Last week, the U.S. Senate Committee on Homeland Security and Governmental Affairs unanimously passed a bill that would bar U.S. federal employees from using TikTok on government-issued devices. It will be taken up by the full Senate for a vote. The House of Representatives has already voted for a similar measure.

President Donald Trump and top administrations officials have said they are considering a broader ban on TikTok and other Chinese-linked apps.

ByteDance acquired Shanghai-based video app Musical.ly app in a $1 billion deal in 2017 and relaunched it as TikTok the following year. About 70% of the equity capital ByteDance has raised from outside investors has come from the United States, according to one of the sources.

Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor


Categories
Tech

US Probing Allegations that TikTok Violated Agreement Protecting Children's Privacy: Sources

Image for representation.

Image for representation.

A second person, speaking privately, confirmed that advocates had met with officials from the two agencies to discuss concerns TikTok violated the consent decree.

  • Reuters WASHINGTON
  • Last Updated: July 8, 2020, 7:51 AM IST

The Federal Trade Commission and the US Justice Department are looking into allegations that popular app TikTok failed to live up to a 2019 agreement aimed at protecting children’s privacy, according to two people interviewed by the agencies.

A staffer in a Massachusetts tech policy group and another source said they took part in separate conference calls with FTC and Justice Department officials to discuss accusations the China-based short video sharing app had failed to live up to an agreement announced in February 2019.

The Center for Digital Democracy, Campaign for a Commercial-Free Childhood and others in May asked the FTC look into their allegations TikTok failed to delete videos and personal information about users age 13 and younger as it had agreed to do, among other violations.

Reuters could not determine whether any action would be taken against TikTok by either of the two agencies.

A TikTok spokesman said they take “safety seriously for all our users,” adding that in the United States they “accommodate users under 13 in a limited app experience that introduces additional safety and privacy protections designed specifically for a younger audience.”

Officials from both the FTC, which reached the original consent agreement with TikTok, and Justice Department, which often files court documents for the FTC, met via video with representatives of the groups to discuss the matter, said David Monahan, a campaign manager with the Campaign for a Commercial-Free Childhood.

“I got the sense from our conversation that they are looking into the assertions that we raised in our complaint,” Monahan said.

A second person, speaking privately, confirmed that advocates had met with officials from the two agencies to discuss concerns TikTok violated the consent decree.

The FTC declined to comment. The Justice Department had no immediate comment.


Categories
Tech

Apple Supplier Foxconn, Others Hit as India Holds up Imports from China, Say Sources

Image for Representation
(Source: Reuters)

Image for Representation
(Source: Reuters)

More than 150 Foxconn shipments – containing smartphone and electronic parts – were stuck at the port of Chennai, though some are being cleared slowly now, the first source said.

  • Reuters New Delhi
  • Last Updated: July 2, 2020, 2:20 PM IST

India’s additional scrutiny of imports from China has disrupted operations at plants owned by Apple supplier Foxconn in southern India, three sources told Reuters, and other foreign firms are also facing delays as tensions between the two countries build.

Customs officers at Indian ports have held back shipments from China and sought additional clearances after deadly clashes at the disputed Himalayan border last month. The checks have been imposed without any formal order.

While several companies such as Apple and Dell have been battling to free stuck shipments, hundreds of employees at Taiwanese contract manufacturer Foxconn’s two plants in the south had no major work to do this week as shipments were delayed, sources said.

More than 150 Foxconn shipments – containing smartphone and electronic parts – were stuck at the port of Chennai, though some are being cleared slowly now, the first source said. The total number of parts in the shipments was not clear.

Foxconn’s two plants in Tamil Nadu and Andhra Pradesh mainly assemble Apple and Xiaomi smartphones in the country and employ thousands of workers, many of whom stay in company-provided accommodation.

“Foxconn was in a very bad state … lots of workers stayed at the dormitory because there was no work,” said the first source.

Foxconn, Apple and Xiaomi did not respond to Reuters queries.

The finance ministry also did not respond. Two officials at the ministry, which oversees the customs department, said the inspection measures were temporary and will ease soon.

“We cannot keep checking 100% of shipments forever … Shipments of non-Chinese companies being impacted will be cleared on priority,” said one official.

While the exact impact of the disruptions is not immediately clear, the delays come when companies in India had already been battling disrupted supply chains due to coronavirus shutdowns in recent months. Business activity has only just begun to pick up.

Prominent US-India lobby groups and local industry bodies have urged the Indian government to intervene.

While some delayed Dell shipments have been cleared since last week, the company had roughly 130 shipments stuck this week at Indian ports, the second source said. This included around six shipping containers with parts for servers and desktop computers, the person added.

Dell did not respond to a request for comment.

Separately, MG Motor, owned by China’s SAIC, also has some shipments stuck at a port in southern India, a source close to the company told Reuters. MG started selling cars in India last year and has committed $650 million in investments.

“The whole (auto) industry will be impacted if components are stuck,” the source said.

MG Motor did not immediately respond to a request for comment.

China’s Commerce Ministry said on Thursday that it hoped India would correct its discriminatory actions against Chinese companies immediately, after India banned some Chinese mobile apps amid the border crisis.