Trump bans US transactions with multiple Chinese apps

By: Miguel A. Rodriguez

18:29, 11 January 2021

The American ban against various Chinese entities continues

President Donald Trump signed an executive order through which transactions with eight Chinese companies are banned. Among the entities are Ant Group's Alipay, Tencent's QQ Wallet, and WeChat Pay. The order prohibits the transactions within 45 days.

The executive order states that "by accessing personal electronic devices such as smartphones, tablets, and computers, Chinese connected software applications can access and capture vast swaths of information from users, including sensitive personally identifiable information and private information." Moreover, the documents further show that the data collected "would permit China to track the locations of federal employees and contractors and build dossiers of personal information."

According to Reuters, this move is meant to curb the threat posed by Chinese software applications. On the other hand, the executive order is causing the Sino-US tensions to escalate even more just two weeks before President-elect Joe Biden takes office.

The news did not impact Tencent's stock price, as it closed 2.23% higher.

Sources: reuters.com, cnbc.com, finance.yahoo.com

Share this article

This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided.