Chinese Payment Apps Hit by Trump Ban
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Ant Group’s Alipay, Tencent Holdings’ QQ Wallet and WeChat pay are among the apps banned by executive order.
Tensions between Washington and Beijing are set to rise with the latest executive order from U.S. President Donald Trump, which bans transactions with eight Chinese software applications.
The move is aimed at curbing the threat to Americans posed by Chinese software applications, which have large user bases and access to sensitive data, citing a senior administration official.
According to the order, the U.S. must take «aggressive action» against developers of Chinese software applications to protect national security.
In October 2020, the U.S. State Department submitted a proposal to add Ant Group to a trade blacklist to deter U.S. investors from taking part in its lucrative initial public offering. The proposal was ultimately rejected. Trump has also previously tried to block some U.S. transactions with WeChat and the Chinese-owned video app TikTok.
U.S. president-elect Joe Biden is set to be inaugurated on January 20, though his stance on China is still unclear.
Questions & Answers
Q.Which specific Chinese payment apps are affected by this executive order?
Which specific Chinese payment apps are affected by this executive order?
Ant Group’s Alipay, Tencent Holdings’ QQ Wallet, and WeChat Pay are among the applications banned. The order targets these payment apps alongside other Chinese software applications.
Q.What is the stated reason for the ban on these Chinese software applications?
What is the stated reason for the ban on these Chinese software applications?
The ban aims to curb the threat to Americans posed by Chinese software applications. A senior administration official cited their large user bases and access to sensitive data as concerns for national security.
Q.Has the Trump administration attempted similar actions against Chinese companies before?
Has the Trump administration attempted similar actions against Chinese companies before?
Yes, Trump previously tried to block some U.S. Transactions involving WeChat and the Chinese-owned video app TikTok. In October 2020, there was also a rejected proposal to add Ant Group to a trade blacklist.
Q.What is the timeline for this executive order and the incoming U.S. Administration?
What is the timeline for this executive order and the incoming U.S. Administration?
U.S. President Donald Trump issued the executive order banning transactions with the apps. President-elect Joe Biden is due to be inaugurated on January 20, though his stance on China is currently unknown.
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