IGN India was the first to report about Battlegrounds Mobile India hosting data on servers in China and other countries. now it says The game will not share information with China servers when you play the game. A small automatic update downloads when you boot up the game which seems to have fixed the problem. Once that update is applied Battlegrounds Mobile India will ask you to restart the game and log back in.
This update released by Crafton reportedly prevents any data from going to Chinese servers. IGN India ran a packet sniffer over the course of two matches after the update was implemented and noticed that Battlegrounds Mobile India was not reporting a single Chinese server. The report states that the Chinese server is pinged only when the app data is deleted. This could be due to the account migration feature, which enabled PUBG Mobile users to transfer their in-app purchases to Battlegrounds Mobile India.
The Confederation of All India Traders (CAIT) has written to the Union Minister for IT and Communications Ravi Shankar Prasad, demanding a ban on Battleground Mobile India in the country. It has also urged Google to remove the game from its Play Store.