Trump ban on WeChat could harm some US businesses
By Caoimhe Toman
Date: Wednesday 26 Aug 2020
(Sharecast News) - US President Donald Trump's executive order banning messaging app WeChat could result in a hit to the revenues of companies in China subject to US jurisdiction.
According to a survey by the American Chamber of Commerce in Shanghai, around 88% of US companies based in China said that they expected a negative impact on operations if WeChat is banned.
Around 56.3% anticipate a loss of competitiveness and over 40% predict a negative impact on their sales, with over a third expecting a loss of global revenues.
"If WeChat has or is doing anything illegal in the US, then take appropriate action in that jurisdiction but do not ban American citizens from choosing to use the application," an unnamed respondent wrote in the AmCham survey.
The executive order that was signed earlier in August and was set to come into force in September would ban unspecified US transactions with WeChat and parent Tencent due to security concerns
The app is the predominant messaging and social media platform in mainland China,
Tencent said two weeks ago that it did not believe the ban would apply to its domestic equivalent Weixin, which could limit its impact on the company.
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