After TikTok Trump comes for WeChat
After the Chinese TikTok owner ByteDance American president Donald Trump is now also taking on Tencent. He speaks of a presidential decree that connected transactions with the company’s Asian-popular app WeChat for more than 45 days.
According to Trump, the WeChat app “automatically transfers vast amounts of information from its users. “In his view, this threatens to provide Chinese Communist Party with access to Americans personal information. WeChat was released in 2011. Users can use the app to sell music, play games and schedule an appointment with a doctor.
The whole Tencent went down on the tracks in Hong Kong in response to Trump’s speech. No less than $46 million of the company’s stock market value evaporated. Tencent was worth $ 686 million before the blow. This also affects the technical investments listed on the Amsterdam Stock Exchange, which has an important interest in Tencent.
The Trump decree raised concern about the consequences of the in-depth relationship between the United States and China on, for example, companies and financial markets. There has also been a warning about the length of the decree. WeChat is only paid for by a civil servants, but the vaguely defined decree could also put pressure on the business relations of Tencent to satisfy American corporate giants. Tencent also has a share in Epic Games, which make Fortnite, and in the League of Legends-developer Riot Games.