President Trump Bans China's TikTok, WeChat : $100 Billion Loss to China

United States President Donald Trump Bans China’s TikTok, WeChat on Thursday, 6-Aug 2020.

Here is the Executive Order signed by US President Donald Trump. Copy of the Executive Order can also be downloaded in the PDF format:-

The executive orders, which go into effect in 45 days, come after the Trump administration said this week it was stepping up efforts to purge “untrusted” Chinese apps from US digital networks and called TikTok and WeChat “significant threats”.

President Trump Bans China's TikTok, WeChat : $100 Billion Loss to China
President Trump Bans China’s TikTok, WeChat : $100 Billion Loss to China

Though the Chinese criticized the move, however this ban by United States President Donald Trump for the national security of the United states is nothing when compared to China banning Google, Twitter, Facebook and other US Tech Multinational Giants in China. We covered about this Chinese hypocrisy in details in our previous article Chinese Hypocrisy: China banning Google, Facebook, YouTube, Twitter is correct, India Banning TikTok is Wrong?

Another Chinese App TikTok has come under fire from US lawmakers over national security concerns surrounding data collection as distrust between Washington and Beijing grows.

Related Article Chinese Industrial Espionage Cases In The USA: The Modus Operandi

Reuters on Sunday (Aug 2) reported that Trump has given Microsoft Corp 45 days to complete the purchase of TikTok’s U.S. operations.

The ban on US transactions with Tencent, one of the world’s biggest internet companies, ends the era of Chinese exploiting the United States Market with its social media influencing apps posing national security threats and at the same time denying access to US Social Media Tech giants like Twitter, Facebook any access to the Chinese Market. On one hand US Tech Giants are not allowed access to Chinese Market and on the other hand China was having a free hand in exploiting the US market. US and allies are also moving their manufacturing out of China at a great speed. This imbalance in Tech Sector due to Chinese Hypocrisy, and President Trump’s recent steps and decisions, as per some experts, implementing the same bans in friendly countries in coordination, will cause China a loss of over $1 Trillion per year on one hand and US saving Billions of Dollars of revenue loss to China per year.

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On Wednesday, US Secretary of State Mike Pompeo expanded a program dubbed “Clean Network” to prevent various Chinese apps and telecoms firms from accessing sensitive information on US citizens and businesses. We covered it in details in our previous article CLEAN COUNTRIES To Use 5G Clean Networks : Mike Pompeo

President Trump’s new orders appeared coordinated with Pompeo’s announcement, Lewis said.

“We are reviewing the executive order to get a full understanding,” a Tencent spokesperson said.

ByteDance declined to comment.

President Trump Bans China’s TikTok, WeChat – Biggest Targets

WeChat has been downloaded a relatively small 19 million times in the United States, showed data from Sensor Tower.

In China, however, the app is ubiquitous as a medium for services as varied as games and payment. It is also a common platform to communicate with individuals and businesses outside China. All the Chinese spy activities and passing of the secret information happens on WeChat.

US social media and messaging services such Facebook’s WhatsApp and Messenger are blocked in China, where a “great firewall” prevents citizens from freely accessing the worldwide web, and where online communication is routinely monitored and censored.

US concerns about China’s tech industry had until recently focused on telecom equipment vendor Huawei Technologies . As relations soured over a host of economic and human rights issues, it has sanctioned numerous other Chinese tech firms.

Tencent is the biggest target yet. It is Asia’s second most-valuable company after Alibaba Group Holding Ltd with a market capitalization of US$686 billion (S$940 million), and is among the world’s largest social media and video game companies.

It opened a California gaming studio this summer and owns minority stakes in numerous gaming and internet firms around the world, including US messaging app operator Snap Inc.

Trump’s order sent Asian stock markets lower on Friday 7-August 2020, with Tencent shares falling as far as 10.1% before recouping some of its losses in afternoon trade.

The yuan, a barometer of Sino-US relations, posted its steepest drop since the United States expelled China from its Houston consulate a little over two weeks ago.

Sweeping Power under which President Trump Bans China’s TikTok, WeChat

President Trump issued the orders under the International Emergency Economic Powers Act, a law that grants the administration sweeping power to bar US firms or citizens from trading or conducting financial transactions with sanctioned parties.

Commerce Secretary Wilbur Ross will identify transactions covered after the orders take effect in mid-September.

Tension has been simmering between the two powers for months, with the United States taking issue with China’s handling of the Chinese coronavirus outbreak, Chinese involvement in Antifa-Riots across the US, moves to curb freedoms in Hong Kong, Chinese involvement in smuggling of illegal Drugs, Counterfeit goods and illegal Arms and gun parts into the United States.

Related Article Everything Fake is Made in China: Companies Losing Billions of Dollars

President Trump said this week he would support Microsoft’s efforts to buy TikTok’s US operations if the US government got a “substantial portion” of the proceeds. He nevertheless said he will ban the popular app on Sept 15, though some Republicans have raised concerns about potential political fallout.

The app may be used for disinformation campaigns that benefit the Chinese Communist Party, and the United States “must take aggressive action against the owners of TikTok to protect our national security,” President Trump said in one order.

In the other comment, President Trump said WeChat “automatically captures vast swaths of information from its users. This data collection threatens to allow the Chinese Communist Party access to Americans’ personal and proprietary information.”

The United States is not alone in its concern about Chinese internet apps: WeChat and TikTok were among 59 mostly Chinese apps that India outlawed in June for threatening its“sovereignty and integrity”.

We covered in our previous Article Government Of India Bans 59 Chinese Mobile Apps including Tik Tok that Indian Government had already banned 59 Chinese Mobile Apps including TikTok and is considering banning more apps.

This action of Indian Government by banning TikTok alone has caused China a loss of over $6 Billion.

The WeChat order would effectively ban the app in the United States by barring “to the extent permitted under applicable law, any transaction that is related to WeChat by any person, or with respect to any property, subject to the jurisdiction of the United States, with Tencent Holdings Ltd.”

It was not clear whether the sanction would effect Tencent’s other holdings in the country.

Market Effect of President Trump’s Order

As per reports, The Trump administration’s move to ban US residents from doing business with Tencent Holdings’ WeChat app rippled through Chinese markets, on Friday (Aug 7) erasing US$46 billion (S$63 billion) from the Internet giant’s market value and sending the yuan to its biggest slump in two weeks.

China’s CSI300 index fell 1.7 per cent to 4,682.02 points at the end of the morning session, while the Shanghai Composite Index lost 1.5 per cent to 3,337.43 points.

The Hang Seng index dropped 2.3 per cent to 24,364.43 points, while the Hong Kong China Enterprises Index lost 2.1 per cent to 9,989.69 points.

Tech stocks fell across the board on Friday. By the midday break, Shenzhen’s tech-heavy start-up board ChiNext fell 2.6 per cent, the newly launched STAR 50 index shed 3.5 per cent, while the Hang Seng tech index slumped 4.7 per cent.

As per experts Once the Ban comes into effect the total loss to China on account of banning only two apps viz TikTok and WeChat will be to the tune of $100 Billion or more.

Points to Ponder

Isn’t it time to either dismantle World Trade Organization (WTO) that is being controlled and manipulated by China or Remove China from United Nations? As long as China remains part of United Nations, it is going to misuse and manipulate United Nations and its different bodies including WTO to its advantage.

World is still waiting when all the countries forfeit all Chinese Debts, takeover or nationalize all Chinese Assets and sue China for killing over 722,000 innocent civilians worldwide and bringing World Economy to a standstill.

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