Dozens of US companies, including Apple and Disney, have voiced concerns about US ban on Chinese chat app WeChat, writes The Wall Street Journal Thursday. According to the companies, the measure has serious consequences for their competitive position in China.
US President Donald Trump signed last week a decree banning transactions between American companies and WeChat’s parent company Tencent by the end of September.
WeChat is a very popular chat app in China. If transactions with WeChat are banned, US companies are at a great disadvantage over competitors in the Chinese market.
The companies still know little about the exact interpretation of the ban. Trump’s decree prohibits “any transaction related to WeChat”. But no details have been disclosed.
Companies fear that the ban will no longer be able to place advertisements in the app. The companies thus lose an important platform for promoting products on the Chinese market.
The ban could have major consequences for Apple, because the company may no longer be able to offer the WeChat app in the App Store. That could be an obstacle for Chinese users of the app if they consider purchasing an iPhone.
The companies hope that the scope of the decree will be narrowed and clarified in the coming weeks.
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