13 Aug 2020
Amid U.S.-China tensions, WeChatt-owner Tencent has stated that Donald Trump’s ban on the app will not have the expected impact, as it will only affect U.S. operations.
Due to its other messaging platform in China, Weixin, Tencent claims that the ban will not affect them as much as is estimated, claiming that the ban could however affect Apple's sales in China, due to the inability to download Chinese messaging apps.
James Mitchell, Tencent's chief strategy officer exapleind, “"If you look at the executive orders from May 2019 and then obviously the executive order a couple of days ago, they specify very clearly they cover US jurisdiction, and consequently we don't see any impact on companies advertising on our platform in China.”
2% of WeChat’s one billion users are U.S. accounts, and therefore, the ban will not hinder any massive sales.
Tencent reported a 37% surge in profits in its second quarter.
Last weeks, the U.S. President issued an executive order prohibiting firms from dealing with WeChat and TikTok for 45 days.
The order stated that "any transaction that is related to WeChat by any person, or with respect to any property, subject to the jurisdiction of the United States, with Tencent Holdings Ltd. (a.k.a. Téngxùn Kònggǔ Yǒuxiàn Gōngsī), Shenzhen, China, or any subsidiary of that entity,” is not allowed.
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