How Trump’s war on WeChat upended the global technology industry

Helen Dunmore Aug 14, 2020

According to news:

President Trump’s executive order last week banned TikTok.
If it cannot find a buyer next month, it may threaten to subvert active social networks and the broader social media market.

But another executive order issued on the same day for another
The Chinese-owned application may shake up more business in the global technology industry.

The government’s attack on WeChat:

The government’s attack on WeChat has affected the stock of parent company Tencent with
uncertainty. This Chinese company is one of the most valuable companies in the world and
has far-reaching tentacles in the technology and entrepreneurial ecosystem including the
The United States.

Read More : Donald Trump wants his face to hitch Rushmore

“China SoftBank”

As the highest-paid gaming company, Tencent predictably supports well-known US game
and entertainment companies such as Epic Games, Glu, and Universal Music Group. It is
called “China SoftBank” and refers to the Japanese conglomerate, which is the king of
technology with large investment funds. From a numerical point of view, Tencent is
Softbank and its investment in private companies ranks second, with a valuation of more
than US$1 billion, second only to Sequoia Capital.
According to data from PitchBook, a research firm that tracks private and public capital
markets, Tencent made 53 investments globally in 2020 alone, compared to 37 investments
made by SoftBank. However, SoftBank is more active in the US market: According to
PitchBook data, Tencent’s three transactions this year were in the United States, while
SoftBank has only 16.

Suppression of WeChat:

The suppression of WeChat may also raise questions about whether the government will
transfer its interests to companies connected to Tencent through partnerships or investments.
Tencent Chief Financial Officer Shi Hanlu said on Wednesday’s earnings conference call:
“According to our preliminary reading and subsequent news reports, the focus of the
the executive order is on WeChat in the United States, rather than other businesses in the United
States.”
Petrie compared the Trump administration’s actions to China’s strict control of the Internet,
the so-called “long firewall.” He said: “This may be the beginning of the great Great Firewall
of the United States.”

Latest Posts

Follow us on Social Media

Leave a Reply

Your email address will not be published. Required fields are marked *

Next Post

Israel and the United Arab Emirates reached a major diplomatic agreement

President Trump announced that Israel and the United Arab Emirates will establish a “fully normalized relationship”. And in exchange, Israel will temporarily abandon its “declared sovereignty” over the disputed West Bank territory. A historical breakthrough with the Middle East: Mr. Trump, Israeli Prime Minister Benjamin Netanyahu and Crown Prince Mohammed […]
major diplomatic agreement