Trump sparks more fire to the trade war with China through more bans and stricter regulations on Chinese apps. Trump administration revealed today that the country will restrict the operation of WeChat and TikTok starting from Sunday.
The ban of the two apps came into the surface after Bloomberg reported the U.S. Treasury’s Committee earlier asked Riot Games and Epic Games to provide information related to security protocols. Both companies’ close ties with Tencent Holdings is expected to fuel the issue.
Chinese apps ban by Trump, chapter 1: WeChat and TikTok
According to The New York Times, the United States will restrict WeChat and TikTok’s operations. The restriction will take into place on Sunday.
Once the new restriction applies, users will be unable to proceed with any fund transfers or payments through WeChat. WeChat will also lose the accessibility to internet hosting, content delivery networks, internet transit, or peering services from any company residing in the United States. Similar treatment will apply for TikTok starting from November 12.
Meanwhile, TikTok might suffer less restricting regulations possibly due to the company’s compliance to Trump’s demands. TikTok will still be available in the U.S., though users will not be able to access updates or maintenance for the apps starting from Sunday. The future for TikTok in the U.S. will depend on ByteDance’s decisions taken until November 12.
The measure taken is one of the United States government approach to “guarantee our national security and protect Americans from the threats of the Chinese Communist Party,” said Commerce Secretary Wilbur Ross.
Chinese trade war chapter 2: Riot Games and Epic Games
Bloomberg earlier reported the U.S. Treasury’s Committee on Foreign Investment in the U.S. (CFIUS) has requested for information on security protocols to Riot Games and Epic Games.
Epic Games itself is not directly related to China. However, Tencent currently owns 40% take of the company. On the other hand, Riot Games, the developer for globally renowned Valorant and League of Legends, is a subsidiary of Tencent that is also fully owned by the Chinese company. As of now, the future for both companies is still uncertain.
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