Like Chinese messaging app TikTok WeChat is targeted by a new presidential decree. Signed on Friday, August 7, 2020, this Cut off all relations with WeChat and TikTok after a 45-day period, under the guise of national security. In fact, this is the Trump administration’sorder these apps to be removed from Google Play Store and App Store.
WeChat wants to believe sanctions won’t apply to Apple in China
But as Tencent executive James Mitchell points out, WeChat’s activities in the United States actually represent only 2% of the app’s turnover. An affirmation that doesn’t seem like empty promises. Tencent group announced a 37% growth in profit in its latest results. It is not yet clear whether the WeChat ban will extend to the Play Store and App Store outside of the United States, particularly in China.
Apple’s business in China (about $44 billion a year) could really take a hit if Chinese users find themselves unable to use WeChat or its Chinese counterpart, Weixin. The presidential decree is quite ambiguous in this respect.. He forbids “Tencent Holdings Ltd. with respect to any property in connection with WeChat or subject to the jurisdiction of the United States by any person. any transaction with (aka Téngxùn Kònggǔ Yǒuxiàn Gōngsī), based in Shenzhen China or any subsidiary of this organization”.
James Mitchell wants to believe in a minimal effect: “If you examine the decrees signed since May 2019, it is very clear that they are the same as the decree signed a few days ago, they very clearly indicate that it covers the jurisdiction of the USA, and as a result we do not see any impact on companies promoting our platform in China”.
It’s an optimism that goes against the Huawei example, though. Because it must be seen that the White House has succeeded in giving a cross-border effect to its sanctions through presidential decrees in this case. Going so far as to prevent foreign suppliers from producing Kirin chips for the group.
Source : BBC
