This archive report was first published on 7 August 2020.
On August 6, 2020, the Trump administration issued an executive order targeting WeChat, a popular messaging app in China, in a move that has left many concerned about the impact on American companies and users.
According to the order, WeChat's parent company, Tencent, could face restrictions on its dealings with American companies, including being barred from advertising on WeChat, which could cut them off from a key channel for reaching China's vast consumer market.
David Dai, an analyst in Hong Kong with the investment research firm Sanford C. Bernstein, warned that the order could even prevent Tencent from purchasing American equipment for the servers from which it operates WeChat, which could have a wider impact on the company's business.
Tencent, which has a market capitalization well above $600 billion, said it was reviewing the executive order to get a full understanding. The company's shares fell almost 6 percent in Friday trading on the Hong Kong Stock Exchange.
Other companies, including TikTok, have also spoken out against the order, with TikTok saying it was 'shocked' by the White House order, which it said had been issued 'without any due process.'
The Chinese Ministry of Foreign Affairs spokesman Wang Wenbin called the order a 'nakedly hegemonic act,' saying that 'on the pretext of national security, the U.S. frequently abuses national power and unreasonably suppresses relevant enterprises.'
