There are still some uncertainties in the wording and implementation of these two administrative orders. Perhaps they may be revoked in the negotiation. However, whatever happens next, it could have lasting negative effects, not only for Chinese companies, but also for us technology companies.
In response to tiktoks executive order, trump wants to promote negotiations between Microsoft and byte hop, requiring Microsoft or other U.S. companies to complete the acquisition of tiktoks U.S. business on September 15. But the ban on wechat could be a bigger threat, as there seems to be no clear solution before the deadline.
The claim will also apply to all social media applications in the United States. In addition, President trump cited conspiracy theories about how tiktok video could spread the origin of the new coronavirus epidemic as one of his reasons for banning the app. But similar conspiracy videos often appear on Facebook and Googles YouTube platforms.
The result of using this reason will be that the rest of the world will follow suit and ban US applications in their territory. Opening such doors around the world is not what the United States wants to see. After nearly a year of investigation, where is the convincing evidence against these two apps? It is obviously not what the wording of the two executive orders says. American high-tech companies are concerned about the negative impact of the two executive orders.
Mark Zuckerberg, Facebooks chief executive, said the tiktok ban would be a very bad precedent with long-term effects and it is likely to have long-term consequences in the rest of the world, according to buzzfeednews Earlier this week, Microsoft founder Bill Gates told Bloomberg that companies need to understand business rules when investing in the United States and want to know when to introduce the tiktok ban. He said, if its a very clear thing, why didnt you do it three months ago, six months ago?
In addition to the risks that governments around the world are following in the US social app business, foreign consumers are likely to rebound. Byte hop and Tencent have achieved great success in China and around the world. By tracking the social applications of the two companies, it is found that Trumps behavior may cause Chinese consumers to stop choosing American products and services.
Clearly, Apples iPhone and app store businesses in China, as well as Starbucks Corp. and Intel, which have large operations in China, could be hit. If implemented, Trumps two executive orders will also bring mental pain and economic difficulties to a large number of Americans who rely on applications for communication and livelihood.
Many e-commerce entrepreneurs, aspiring musicians and their influencers used tiktok as their most effective marketing channel during this years new coronavirus epidemic. Wechat is an important tool for Chinese immigrants to communicate with their domestic families.
According to apptopia, tiktok has a large number of users. Tiktok claims that 100 million Americans are using tiktok app, while wechat has 19 million active users every day in the United States.
The trump administrations decision-making was arbitrary and disorganized, with such an executive order just a few months before the election, designed to provoke fear and paranoia. Policies without careful consideration will lead to unexpected adverse consequences. The US needs to do better than that. (Tianmen Mountain)