WeChat: Multinational businesses question US ban, analysts warn economic consequences

Now that U.S. President Donald Trump stands firm on his decision to ban TikTok and WeChat, market analysts have already speculated the economic issues this move will bring in the future. Earlier this week, renowned Apple supply chain analyst Ming-Chi Kuo shared a scenario that would put Apple's iPhone shipments in jeopardy. Now, it appears that other high-profile businesses echo a similar concern over the controversial move. Now, Disney has joined in along with other companies to share their views on the matter.

WeChat is a multi-faceted platform that offers messaging, mobile payments, and social media functions among others. The app is developed by Tencent Holdings Limited, which is perhaps one of the biggest Chinese conglomerates with multinational subsidiaries in several market segments.

The most recent data values it at around $69 billion, which makes it a valuable partner for most firms based in the United States. A report published by The Wall Street Journal claims that Apple, Disney, Ford, and Walmart joined forces with other renowned companies based in the U.S. to get in touch with government officials.

Trump recently signed the executive order, which, in a few weeks – will go into effect. It seems that there are certain details that remain unclear as the group communicated with the White House to learn more about what the ban encompasses. Given that most businesses who deal in the Chinese market rely on WeChat, if the current administration blocks every aspect of the app, it could have serious implications moving forward.

Meanwhile, another app with alleged ties to Beijing was likewise the subject of another ban order. This has prompted the exodus of popular content creators, who have now shifted to other similar services. However, this could be dropped if the video-sharing app is sold to a U.S. company.

So far, Microsoft has expressed interest in the acquisition of TikTok, but Trump supposedly requested some changes that would also benefit the government. The WeChat ban is the latest in a series of actions taken by the United States in its escalating row with China. Huawei has already seen a huge drop in profits after its products and telecommunications technology was blacklisted for being a national safety concern.