Major US companies, including apple, have called on the trump administration to end an executive order that would ban wechat and tiktok in the US, according to us technology website Appleinsider. The U.S. companies believe the executive order will cause damage to U.S. companies trying to trade in China.
the executive order aims to establish a so-called “clean network” to exclude “untrusted” Chinese applications, and prohibit tiktok and wechat from being used in the United States. The order has elicited a strong reaction from some critics, and US companies have now complained directly to the White House, given the potential economic problems the move may bring.
on Tuesday, the Wall Street Journal reported that in a conference call with White House officials, more than a dozen U.S. multinationals highlighted the potential problems they would face after the trump administration’s ban took effect. The ban will come into effect in September unless it is called off earlier. The companies said the wechat ban could weaken the competitiveness of US companies in China, the world’s second largest economy.
the conference call was attended by representatives of apple, as well as Ford, Goldman Sachs, Intel, Merck, metropolitan insurance, Morgan Stanley, P & G, United Parcel Service, Wal Mart and Disney.
on the phone, the companies wanted to clarify the meaning of the administrative order, which would prohibit Americans from engaging in “any wechat related transaction”, but it was not clear what this meant, and the details would be decided by the Ministry of Commerce. The consortium hopes to narrow the scope of transactions defined by the order before it is implemented.
some speculate that the ban may affect app stores around the world, and a white house document shows that it is pushing to ban Apple’s app stores outside the United States, including in China.
wechat is a platform with more than 1.2 billion users worldwide, and it is the primary communication application in China. Wechat service covers all aspects from marketing and communication to e-commerce and payment, and is an important business tool in China.
Craig Allen of the U.S. – China Trade Council said: “for those who don’t live in China, they don’t understand how much impact it would have if US companies were not allowed to use it. Compared with all their competitors, they will be at a serious disadvantage. ” For apple, analyst Ming Chi Kuo speculates that the ban on wechat could have a significant impact on Apple’s global sales, possibly leading to a drop in global shipments of up to 30%.