At noon on August 8, Beijing time, US President Donald Trump issued an executive order on Thursday evening to ban Americans from using WeChat for 45 days. This is for those American users who rely on WeChat to communicate with relatives and friends in China. It was a devastating blow.
WeChat provides a series of services in Chinese apps, such as ride-hailing and mobile payments, but the flagship service of this software is a messaging platform. Compared with China, WeChat has little influence in the United States, but for users who need to communicate between the two countries, the SMS service provided by this software is essential.
Trump’s ban on WeChat will make it impossible for users to communicate with friends and family in China instantly. It is also impossible for users of WeChat to switch to other SMS platforms in the United States because these platforms are not available in China , such as Facebook’s Messenger and Instagram, Google and Snapchat. WhatsApp, another popular global instant messaging service owned by Facebook, is also unavailable in China. Therefore, WeChat has become a key service for user communication between the two countries.
I didn’t realize the importance of WeChat until a good friend of mine went to China to visit relatives for a month four years ago. We no longer rely on the usual Apple iMessage or Facebook Messenger to chat, but instead use WeChat. She explained that this was the only way she could send the latest news to her family every day or make regular calls. Trump’s ban will quickly cut off convenient communications between millions of families.
This executive order has frightened investors. WeChat, a software owned by technology giant Tencent, shares in Tencent fell 5.04% on Friday. In addition, Tencent is also a giant in the video game field, holding shares in companies such as Activision Blizzard and Riot Games, so the impact of the Trump ban may extend beyond WeChat.
A Tencent spokesperson said in an email: “We are reviewing this administrative order to gain a full understanding.”
The United States has recently increased its attacks on Chinese technology companies, and most of its attention has been focused on TikTok, a social media platform operated by Bytedance. Microsoft has become a strong competitor for the acquisition of TikTok’s US business. At present, no business leader has made it clear that they are trying to save WeChat’s business in the United States, which means that it is also in a difficult situation.
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