Banning TikTok and WeChat: Will Users Be Affected?

Ban on TikTok and WeChat in the US TikTok

The popularity of the Chinese platform Tik Tok is forcing global competitors to use political methods to counter the more successful brand. The proposed material examines the circumstances of the introduction of the ban by the US presidential administration in September 2020, on TikTok and Wechat, the results of the proceedings and the consequences for users from EU-US.

Ban on TikTok and WeChat in the US

In September 2020, US President Trump imposed a ban on the activities of the well-known Chinese social network Tik Tok and the Wechat messenger (it became impossible to use these products on Apple and Google electronic resources).

This measure banned the placement of these platforms through file hosting services in America. In response to this measure, the US Department of Commerce issued a corresponding order. At the same time, any money transfers through these platforms were prohibited.

The introduced restrictive measures are explained by the following claims against the company from China:

  • a threat to US national security;
  • anti-American propaganda on the network, initiated by the owners of the platform;
  • monopoly of services in the market.
  • Ban on TikTok and WeChat in the USBan on TikTok and WeChat in America

    The ban is mostly connected with political motives and is justified by the administration of the American president on issues of national security. Another reason for this step is the desire to buy a controlling stake in a popular platform in the United States by an American corporation. Negotiations on the deal at this time were in full swing.

    After the connection of the Ministry of Commerce, the TikTok and Wechat applications were banned from downloading in the country. According to officials, the temporary restrictions may affect the overall popularity of the Chinese platform, since users from the United States, deprived of the social network, will refuse to use these software products after the news of the lifting of these sanctions.

    The US administration hopes that such measures encourage manufacturers to develop new resources to fill the gaps. News about the persecution of individual users who violate the imposed bans is not expected.

    These actions are the result of a deliberate policy caused by America’s trade war with China. The result of this confrontation was expressed in a serious reduction in the investment of Chinese businessmen in the US economy. Statistical data on investment in the American segment of the market by investors from China are given in the table.

    Year Investment volumes, billion US dollars
    2016 46.5
    2018 5.4
    2019 5

    The trend is clear. It is unlikely that the decision to introduce restrictions on Tik Tok and WeChat will improve the situation.

    For users

    This measure will primarily affect US users. But even for them, the TikTok application remains available when downloaded through services with foreign jurisdiction.

    The US President’s ban on Tik Tok and Wechat will not affect English fans of this social network, since it does not apply to the territory of EU-US.

    For TikTok

    Considering that the TikTok project is not the most profitable segment of the famous Chinese brand ByteDance, which includes this social network, the introduced restrictive measures will not be able to radically affect the economic situation of its owners.

    How much is the company that owns TikTok worth?TikTok

    Ultimatum Donald Trump

    As a result of the restrictions imposed on TikTok and WeChat, Donald Trump demanded the sale of a controlling stake in the TikTok network in America to an American company.

    The true interests of the President of America were explained by the desire to bring down the price of this deal, since the market value of this segment of the Chinese brand significantly exceeded the financial capabilities of buyers. The move is a way of putting pressure on the Batedens owners to get better deal terms.

    But it will be mainly American users who have lost access to popular platforms that will suffer from such news.

    Ban appeal

    In response to the imposition of a temporary ban, TikTok filed a protest with the judiciary over restrictive measures taken at Trump’s command by the US Department of Commerce. On December 7, 2020, Judge Carl Nichols satisfied the lawsuit filed.

    This decision was the reason for the filing of an appeal by the US government to satisfy the claim of the owners of Tik Tok.

    As a result of all these actions, the American company was able to buy the rights to use the TikTok platform in America without the Chinese owners selling the company’s assets, as was originally supposed. At the same time, businessmen from China retained a controlling stake.

    The restrictions and bans imposed by the US government on the work of the famous Chinese brand Tik Tok in the US did not affect the global popularity of this social network. Especially about this news, users from EU-US should not worry.

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