On August 6, Mr. Trump signed an executive order barring any individual or entity from making any transactions with ByteDance, TikTok’s parent company, and Tencent, weChat’s parent company. The ban came into effect 45 days later (20 September). After the ban takes effect, it remains to be known what fate WeChat and TikTok will face in the United States. People familiar with the matter said the Trump administration is discussing the scope of the deal ban and whether there will be a transition period before it takes effect, Bloomberg reported Tuesday.
The final decision will be published in the U.S. government’s Federal Gazette around September 20, the sources said.
Bloomberg: The White House is discussing the scope of the ban.
Under Trump’s executive orders against TikTok and WeChat on August 6, the U.S. government will ban any transactions related to WeChat and TikTok between Tencent, ByteDance and any individuals and entities subject to U.S. jurisdiction on September 20, respectively;
The paper ban leaves a lot of room for discussion: whether it will take effect immediately on September 20th, or whether it will leave a transition period for businesses;
In the face of the controversy, people familiar with the matter told Bloomberg that the Commerce Department is drafting documents that will clarify specific deals that will be banned for WeChat and TikTok, and when they will take effect and whether there will be a transition period for U.S. companies to adapt.
One of the people familiar with the matter said the scope and duration of the ban were interrelated. If the scope of the ban is narrow, companies may get a short or no transition period.
In addition, Bloomberg notes that many U.S. companies doing business with ByteDance and Tencent are concerned that Trump’s August 6 ban will apply only to commercial transactions that occur on U.S. territory, as the announcement says. Or will it extend to their global operations?
While some U.S. officials have told businesses that their business in China will not be affected, Bloomberg has learned that there is a conflict of opinion among members of the Trump administration’s cabinet and that it will ultimately be up to Mr. Trump to extend the ban beyond the United States. A Commerce Department official responded that the agency does not comment on internal discussions.
The final decision will be published in the U.S. government’s Federal Gazette around September 20, Bloomberg reported, citing sources. The sources spoke on condition of anonymity because the discussions were private.