The President of the US Donald Trump has signed executive orders that is essence ban the Chinese video-sharing app TikTok and the messaging service WeChat. This move is being seen as a dramatic escalation of tensions with the Chinese government.
Using his Presidential emergency powers, President Trump on signed the orders, which give TikTok’s parent company ByteDance 45 days to sell the app. A second executive order will see ‘WeChat’ banned from the U.S. after the same 45 day period.
The executive orders also prohibit any U.S. transactions with the WeChat parent company Tencent who are a major Chinese company that owns significant shares in Tesla, Snap Inc, and Reddit. Recent interactions between the US and China have led some to warn of a ‘Silicon Curtain’ descending between the two countries.
Nana Otsuki of Monex securities has warned: ‘China could block Apple or Microsoft from China. The information sector growingly looks divided into two camps. We could be seeing just the beginning of an information technology war. Investors in the West would have to hesitate to invest in China, missing growth opportunities there when there are not many investment opportunities except perhaps except for Nasdaq’.
Significant reports have been doing the rounds that Microsoft are in talks to acquire TikTok as part of a firesale. This order will only increase the pressure to get that deal done by the September the 20th deadline enforce by this order as after that date TikTok would be banned throughout the U.S.
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Current Affairs Correspondent | My name is Oliver Down I am 22, and a staunch brexiteer. I am a Bristolian lad who studied politics in Leicester. I believe in free speech and accurate journalism and I won’t be afraid to give you “the other side” of the story!
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