WeChat ban: Why Apple, Intel and others are ‘unhappy’ with WeChat ban
American tech giants like Apple, Intel along with other non-tech companies like Walmart, Ford, Disney and others are unhappy with president Donald Trump’s WeChat ban. American companies are reportedly urging Trump to rethink the ban and this would severely affect their business in China and the WeChat ban may actually benefit Chinese competitors.
As per a report by The Wall Street Journal, “more than a dozen” American companies have raised concerns with White House officials. They are expecting the Trump administration to narrow the ban so that the WeChat ban is just limited to the US and not globally.
WeChat is not just any random messaging app in China. It’s like an operating system on its own and for businesses to thrive in China, being on WeChat is somewhat essential. This is because WeChat facilitates payments, social media, news, calling and more. It is like a one-stop platform for everything digital. So, not including WeChat while doing business in China is expected to make it difficult for American companies to compete with local players.
For example, if Apple and Google are forced to completely ban WeChat then Chinese buyers may not find the need to buy Google’s Android-based phones or an iPhone. Without WeChat, users won’t be able to chat, make payment, surf social media and more. This would give local rivals, mainly Huawei, a huge advantage.
Analyst Ming-Chi Kuo predicts that iPhone sales in China may take a major hit if Apple is forced to remove WeChat from the App Store. Reports suggest that Apple’s sale may go down by as much as 30% if WeChat access is taken away from iPhones. Not to forget, WeChat is a major platform for the outside world to contact with Chinese nationals in China.
So, instead of the blanket ban, American companies want the ban to be reduced just to the US. This would help them continue doing their business in China as usually.