Another Chinese app faces ban over national security concerns
After #TikTok was saved from banning its US presence by Oracle, another Chinese company is targeted by the #Trump Administration, Tencent's WeChat. Following the pattern set through TikTok, the Commerce Department has set a deadline for September 20 to draft measures for blocking the so-called "transactions" with the owners of the apps.
WeChat is a hugely popular app that provides, among other things messaging and financial transfer services. It is used by people of Chinese descent to communicate with friends and family and to conduct business in mainland China. However, the app is censored in China, and as of August, it can undergo restrictions set by the Chinese authorities.
But the matter didn't stay between the US and the Chinese companies. Multiple US-based #WeChat users are suing the president and his administration, seeking an injunction against the order. The US WeChat Users Alliance claims that the order would violate the US users' freedom of speech, religion, etc. According to the filing, they are not affiliated with WeChat nor with Tencent Holdings.
However, the Justice Department stated that the Commerce Department "does not intend to take actions that would target persons or groups whose only connection with WeChat is their use or downloading of the app to convey personal or business information between users."
The hearing of the Alliance is scheduled for today.
Tencent Holdings closed the Hong Kong trading session lower by almost 1%.
Read all about TikTok and Oracle here!
Sources: marketwatch.com, apnews.com
Users/readers should not rely solely on the information presented herewith and should do their own research/analysis by also reading the actual underlying research. The content herewith is generic and does not take into consideration individual personal circumstances, investment experience or current financial situation.
Therefore, Key Way Investments Ltd shall not accept any responsibility for any losses of traders due to the use and the content of the information presented herein. Past performance is not a reliable indicator of future results.