On Thursday Donald trump “passed from words to deeds”, after accusations a Chinese technology companies, Tencent and ByteDance in the illegal use of a huge number of confidential data of Americans, the President issued orders banning transaction through their platform to the United States.
According to the decree of the President of Donald trump, signed on Thursday, US 45 days to impose a ban on transactions in the country through the platform of Chinese technology companies, Tencent and ByteDance, which owns the popular app WeChat and TikTok, respectively.
Shares of Tencent Holdings Ltd on the Hong Kong stock exchange fell more than 5% in after-hours trading Thursday on the news.
The step marks the transition of the US government to tough measures against Chinese technology companies, earlier initiated against Huawei and ZTE.
While U.S. Secretary of state Mike Pompeo explains these measures by the desire to protect the sensitive data of Americans and national security, the government of China regards this policy as an obstacle to competition.
Guide TikTok also denies the allegations and indicates that the data users in the United States are stored in the country with a backup in Singapore, and since data centers located outside of China, this information is not subject to Chinese law.
Anyway, the details of prohibition of transactions in WeChat and TikTok remain unclear.
Executive orders States that after 45 days, the Minister of Commerce Wilbur Ross “must identify the transaction”, which will be subject to the ban.
The terms of the ban approximately coincide with the timing, the results of which should be completed negotiations between Microsoft (MSFT) and ByteDance about a potential acquisition of business TikTok in the United States, Canada, Australia and New Zealand.
Details of the deal are unknown, as there is no guarantee that it will be in the end. Donald trump, after talking with the CEO of Microsoft by Satya Nadella, gave the companies a deadline until September 15 to complete the negotiations.
Analysts and international experts noted that the announced prohibitions on transactions of the Chinese technology companies in the United States may provoke retaliatory measures Beijing.
Recently, the United States closed down Consulate of China in Houston, prompting China to do the same with the US Consulate in Chengdu.
Relations between the two countries deteriorated after the start of the pandemic COVID-19 and accusations by the President of the Donald trump of Beijing in the lack of efforts to contain it.
The number of disagreements and claims on both sides increased, which requires discussions at the highest level. Marketinfo.pro recently wrote that the video conference with the participation of key persons in international trade negotiations may be held August 15.