WeChat ban in the United States has already begun. Unlike ByteDance's TikTok, its parent company called Tencent said to be unconcerned with its impact on China's messaging app. It turns out, American users on the platform are not that many with only 2% of the market. The Cupertino company Apple, however, should be the one worrying the most. Here's why.
Why WeChat isn't affected with the U.S. ban
On Aug. 6, the U.S. President Donald Trump signs an executive order asking Chinese companies of Tencent and ByteDance of being banned in the country. These apps include famous TikTok and WeChat.
In the span of 45 days, all companies associated with the said Chinese tech giants must withdraw their arrangements over 'national security issues.' ByteDance already released a statement regarding the ban saying they were 'shocked' with the sudden decision.
Meanwhile, Tencent reveals not feeling any worried on their end, according to BBC.
It turns out, WeChat's user base on America is only 2% of its total market or revenue. Therefore, not being totally affected, even the WeChat ban is implemented.
"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 U.S. jurisdiction, and consequently we don't see any impact on companies advertising on our platform in China," said James Mitchell, Tencent's chief strategy officer.
Tech Times also reported that the Tencent games, including Fortnite, League of Legends, and Valorant, are also unaffected by the executive order.
WeChat U.S. Ban: How about Apple?
Although WeChat expresses unmoved by the recent U.S. ban, the same expression may not be said to Apple. Interestingly, the Cupertino-based company may be the one that will be most affected by the U.S. ban.
Once the 45 day-deadline is over, Apple devices won't be allowed to download 'WeChat' nor 'TikTok.' Since 'WeChat' is the main messaging app of China, Tencent warns that iPhones may not be an option for smartphones in the country anymore. After all, the app that they needed the most won't be available on the device.
According to calculations, Apple's yearly revenue in China amounts to an estimated $44 billion. Apple has not yet commented on the matter.
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This article is owned by Tech Times
Written by Jamie Pancho
