U.S. Secretary of State Mike Pompeo speaks throughout a joint interview as part of a conference with the Prime Minister of Czech Republic Andrej Babis in Prague, Czech Republic, on August 12, 2020.
Petr David Josek | AFP | Getty Images
U.S. Secretary of State Mike Pompeo stated President Donald Trump’s executive orders versus TikTok and WeChat might be “broader” than simply those 2 apps.
Pompeo did not intricate, however his remarks might be meaning action versus other Chinese apps and even TikTok’s moms and dad business ByteDance, or WeChat owner Tencent.
“So when President Trump made his announcement about not only TikTok, but about WeChat – and if you read it, it’s broader even still than that – is that we’re going to make sure that American data not end up in the hands of an adversary like the Chinese Communist Party, for whom we have seen data uses in Western China that rival the greatest human rights violations in the history of mankind,” Pompeo stated in a speech in Prague, Czech Republic.
The orders call both Tencent and ByteDance. One of the executive orders restricts “any transaction by any person, or with respect to any property, subject to the jurisdiction of the United States, with ByteDance Ltd. … Beijing, China, or its subsidiaries, in which any such company has any interest” as determined by the U.S. Secretary of Commerce.
Another executive order restricts “any transaction that is related to WeChat by any person, or with respect to any property, subject to the jurisdiction of the United States, with Tencent Holdings Ltd. … Shenzhen, China, or any subsidiary of that entity.”
The executive orders are unclear and do not define what a “transaction” suggests. But Pompeo’s remarks, in which he discussed these 2 particular orders, might be a tip the action might extend beyond the 2 apps called.
Both ByteDance and Tencent were not instantly readily available for remark when gotten in touch with by CNBC.
Pompeo’s remarks followed Tencent executives soft-pedaled the effect of Washington’s relocations.
“WeChat and Weixin are two separate products, with WeChat serving our International users,” John Lo, primary monetary officer of Tencent, stated on the business’s incomes get in touch with Wednesday. Weixin is the variation of WeChat for mainland Chinese users.
“Based on our initial reading and subsequent press reports the executive order is focused on WeChat in the United States and not our other businesses in the U.S,” he stated. “We are in the process of seeking further clarification from relevant parties in the U.S.”
The U.S. represents less than 2% of Tencent’s international income and less than 1% of overall marketing income, according to the business.
James Mitchell, chief technique officer at Tencent, stated he does not think that U.S. business marketing on Tencent platforms in China will be affected as the executive order covers just the U.S. jurisdiction.