WeChat downplays Trump executive order

WeChat parent company Tencent has downplayed president Trump’s proposed ban, believed to affect US operations. The social media application runs a similar application in China called Weixin that hopes not to be affected.

Smartphone company Apple might be largely affected if developers restrict download of Chinese messaging apps.  However, Apple still has a production company in China which might lead to the company designing specific phones for the Chinese market different to those meant for the European market.

WeChat currently enjoys close to a billion users globally but argues that US users only account for 2 percent revenue. This means that the company will not be largely affected if Trump actualizes his proposal. Trump has last week instructed US companies to stop doing business with both TikTok and WeChat within 45 days due to spying claims.

In what some see as an extension of Trade wars between Washington and Beijing after claims of Microsoft interests in acquiring TikTok operations in the US, it may also result in counter measures by Beijing in response to Trump’s actions.

Tencent Chief strategy officer Mr. James Mitchell claimed that Trumps orders only affected US jurisdiction and did not see any consequences to partner firms advertising on the platform in China.

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