There are lots of issues bedeviling the Chinese tech industry, especially in recent times. The long-awaited verdict between the US and China regarding the social media video-sharing tech giant, TikTok has finally come to an end, as Donald Trump has issued executive orders to ban TikTok and WeChat in the US.
This move has immediately affected the stock price of China’s tech juggernaut, Tencent, making it dip by 5.04% on Friday morning after President Donald Trump issued executive orders regarding the TikTok and WeChat ban.
According to the Hang Seng Tech index, which tracks the 30 largest technology companies listed in Hong Kong, the index went bearish and also fell by 2.51% to close at 7,386.66. On Mainland China, the Nasdaq-style start-up board Chinext slipped 2.065% on the day.
ByteDance, and Tencent which are both parent companies to TikTok and WeChat respectively are both based in China.
Back Story
Recall, that President Trump, yesterday, issued directives banning any U.S. transactions with the Chinese tech firms —Tencent and ByteDance. But, the supposed ban will take effect in 45 days and could attract retaliation from China.
According to Trump, “WeChat automatically captures vast swaths of information from its users. This data collection threatens to allow the Chinese Communist Party access to Americans’ personal and proprietary information.” The president went on to say that the application also captures personal information of Chinese nationals visiting the U.S at this time.
China isn’t having it cool with the U.S as the Chinese foreign officials disclosed on Friday at a media briefing that it is strongly against President Donald Trump’s executive orders. More so, the spokesman of the Chinese foreign ministry said it will defend the legitimate rights and business interests of China amidst everything that is happening.
Recall that, recently the social media powerhouse, Facebook pulled a quick one against the embattled TikTok. They further edge them out of the system with their new Reels feature on Instagram.
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