Dont piss off your buyer
The Chinese made the mistake of pissing off the country with whom they have their second largest trade surplus (overall #3 behind US and the multi state EU). Only an idiot starts a border war with a country that’s a destination for your finished goods, a source of your raw material, AND a competitor for your manufacturing base. The Chinese, for all their supposed smarts, did that.
The app ban is not even the first round, TikTok was banned a month ago, and stopped working in India the day after the ban. Huawei/ZTE have been banned from all 5G contracts. Chinese construction companies have been debarred from all the expressway and high speed line construction projects (the Mumbai Ahmedabad 515km high speed line is being extended to a 1500km Delhi-Mumbai 350km/h line, plus 6-8 other lines). Chinese goods imports have been hit with mandatory inspection requirement at ports, causing them to pile up for months without clearance.
The loss in exports and business value has probably hit about $25 billion now, with more to come. And to add:
PUBG app ban: Tencent loses $34 billion in value in two days
The best the Chinese have managed in response is to beat up some Indian gold traders in Hong Kong.