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Trump, at war with Chinese app companies

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Miguel A. Rodriguez
Miguel A. Rodriguez
14 September 2020
President Donald Trump imposed bans on U.S. transactions with China's ByteDance, owner of TikTok, and Tencent, operator of WeChat and Asia's second-biggest company by market capitalization.

The U.S President called TikTok and WeChat "significant threats to American citizens" before announcing the ban, which will go into effect in 45 days. Both apps had previously come under fire from U.S lawmakers over security concerns surrounding data collection.

Trump issued the order on Thursday under the International Emergency Economic Powers Act, a law that grants the power to prohibit U.S. firms or citizens from conducting financial transactions with sanctioned companies. 

Tencent is China's second-biggest company after Alibaba. Following the ban, its shares dropped by almost 10% in Hong Kong. The Asian markets fell as well, with HongKong45 falling 2% and Japan225 shedding 0,6%.

Source: investing.com

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Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.