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US companies in China face uncertainty with US ban on WeChat

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The experts said: When Tencent makes an assessment of the extent to which its business has been affected by the US decision to ban the WeChat messaging app in the country, US companies in China may become unintended victims because of their heavy reliance on the app.

On Thursday, US President Donald Trump unveiled a blanket ban on US transactions with the two companies that own the app (WeChat) and the video-sharing app (TikTok), which his administration described as “big threats.”

It is unclear to what extent the executive orders, which will go into effect within 45 days, will affect WeChat’s business, and whether Tencent’s huge fleet of investments in the United States and other parts of the world will come as a guarantee.

And (Chung Dong Li) – a Beijing-based technology analyst said: If the ban includes American companies that do business through WeChat, it will cause more harm to US companies, such as Walmart and Starbucks. Starbucks over (Tencent).

It is noteworthy that (WeChat) is a comprehensive mobile application that combines alternative Chinese services to Facebook, WhatsApp, Instagram and Venmo. The so-called super app is almost essential for daily life in China, with more than 1 billion users. American brands are used; Big and small, from Nike to KFC, Starbucks, and Amazon We-app programs are included in WeChat to facilitate transactions and engage consumers in China.

Widgets users do not need to download these retail applications separately as they can access those applications stored in the cloud (WeChat).

While it is unclear if and how much of US companies will be affected, Raymond Wang – managing partner at law firm (Anly Partners) in Beijing said: US companies on WeChat may be able to survive The ban “as long as their WeChat related entities are registered outside the United States.”

And if the ban only covers WeChat business in the United States, it will have a limited impact on both (Tencent) and US companies that rely on the app in China, as it is not used extensively by non-Chinese individuals in the United States.

However, Trump’s executive order led to shares of Tencent, which is the second most valuable company in Asia with market capitalization of $ 686 billion, tumbling as much as 10% on Friday.

Published via GSM Nigeria Blog! All rights reserved Nigeria GSM
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