U.S. President Donald Trump signed two executive orders on June 6, announcing that he would ban any U.S. individuals and businesses from doing any transactions with Byte Dance, the parent company of TikTok, after 45 days, and prohibitUAs and Companies from doing any thing with WeChat. There are still some uncertainties in the wording and implementation of these two executive orders, and perhaps in the negotiations they may be withdrawn. But whatever happens next, this could have a lasting negative impact, not only for Chinese companies, but also for U.S. technology companies.
In response to TikTok’s executive order, Mr. Trump wants to push Microsoft and ByteDance to negotiate a september 15 acquisition of TikTok’s U.S. business. But a ban on WeChat could be a bigger threat, as there appears to be no clear solution before the deadline.
The threat to Chinese applications from Mr. Trump’s two executive orders is clear, but they could also cause trouble for America’s biggest technology companies in the future. For example, Trump claims that TikTok’s access to location data and information about user activities could be “potentially” used for extortion and espionage.
The allegations will also apply to all social media apps in the United States. In addition, President Trump cited conspiracy theories about how the TikTok video spread the originof the new crown virus outbreak as one of the reasons for his ban on the app. But similar conspiracy-theory videos often appear on Facebook and Google’s YouTube platforms.
The result of this argument would be that the rest of the world would follow suit and ban American applications on its territory, opening such doors around the world that the United States does not want to see. After nearly a year of investigation, where is the compelling evidence against these two applications? It is clearly not what the wording of the two executive orders says. U.S. high-tech companies have expressed concern about the negative impact of the two executive orders.
Mark Zuckerberg, Facebook’s chief executive, said the TikTok ban would be “a very bad precedent with long-term implications” and “it is likely to have long-term consequences in the rest of the world,” according to BuzzFeed News. Earlier this week, Microsoft founder Bill Gates told Bloomberg that companies need to understand business rules when investing in the U.S. and want to know when to introduce the TikTok ban. “If this is a very clear thing, why didn’t it act three months ago, six months ago?” he said. “
Foreign consumers are also likely to rebound, in addition to the risks that governments around the world are following in on U.S. social app businesses. ByteDance and Tencent have had great success in China and around the world, and by tracking the social apps of both companies, it has found that Trump’s actions may trigger Chinese consumers to stop choosing U.S. products and services.
Apparently, Apple’s iPhone and App Store app Store business in China, as well as Starbucks Corp., which has a large presence in China, and Intel, both of which could be hit. If implemented, Mr. Trump’s two executive orders would also cause mental pain and economic hardship to americans who rely heavily on apps to communicate and earn a living.
Many e-commerce entrepreneurs, aspiring musicians and their influencers used TikTok as their most effective marketing channel during this year’s new crown virus pandemic. WeChat is an important tool for Chinese immigrants to communicate with domestic families.
According to Apptopia, TikTok has a huge number of users, with TikTok claiming that 100 million Americans use the TikTok app, compared with 19 million daily active users in the United States.
The Trump administration’s arbitrary and chaotic decisions, issued just months before the election, were designed to stir up fear and paranoia. The absence of well-thought-out policies can lead to unintended adverse consequences. The United States needs to do better than it should.