Donald Trump orders to ban US transactions with Chinese owners of TikTok and WeChat. Trump cited India’s decision to ban the two applications while announcing the banning of transactions. The US restriction on the transactions will kick in after 45 days, mid-September.
The presidential directive accused the mobile applications of stealing the information from users that may potentially be used by the Chinese Communist Party.
The US President cited the restrictions of these apps on federal govt phones. He later cited India’s ban on Chinese applications.
“The Government of India recently banned the use of TikTok and other Chinese mobile applications throughout the country; in a statement, India’s Ministry of Electronics and Information Technology asserted that they were “stealing and surreptitiously transmitting users’ data in an unauthorized manner to servers which have locations outside India,” President Trump said.
Donald Trump also referenced restrictions placed by India and Australia on WeChat.
India was the first country to ban 59 Chinese mobile applications. Amid border tensions with China, India said that these apps threatened the country’s integrity and sovereignty.
On June 29, the Indian government ordered the ban, however, this banning did not explicitly ban people from using mobile apps. The order forced app stores to boot out the 59 applications.
China already banned US apps and websites such as Facebook and Google from operating in China. Moreover, China helped its tech-firms to build its brand in the US such as Alibaba Group holding to Tencent Holding.
As per news agency Bloomberg, the US order to ban Chinese transactions from TikTok and WeChat had a visible impact in the share market. The order erased dollar 30 million from the Internet giant Tencent Holdings Ltd ’s market value and sending the yuan to its biggest slump in two weeks. Tencent was of worth dollar 686 billion before Friday’s drop.