President Donald Trump’s order on banning TikTok and WeChat is likely to damage iPhone sales in China, which is one of Apple Inc.'s most important and lucrative markets. The tech giants were accused of stealing data on American consumers.
The new ban completely restricts the distribution of these products in the App Store, as well as blocks all transactions related to them. Notably, experts say that it is possible to find an alternative to TikTok, yet WeChat is a different kettle of fish. WeChat is central to digital life in China. Billions of people use this app for shopping, payments, email, other forms of business, and personal communications. When a foreigner visits China, they have to download the app topping it with money. Otherwise, they cannot pay for even small purchases. Recent surveys show that without access to WeChat, most smartphone users will balk at buying an iPhone in China and other parts of Asia. "China accounts for about 20% of Apple’s iPhone sales, so pulling WeChat off the App Store would be a serious hindrance," Anand Srinivasan, an analyst at Bloomberg Intelligence said.
Trump gave American companies 45 days to terminate transactions with TikTok and WeChat-owned companies in the US jurisdiction. The White House claims that Chinese apps threaten the national security of the United States.
