Apple, others, call White House to warn against WeChat ban

Cupertino said to have the most at stake if the iPhone loses China’s multi-purpose messaging, social media and mobile payment app.

From the Wall Street Journal’s “Corporate America Worries WeChat Ban Could Be Bad for Business” ($):

U.S. companies whose fortunes are linked to China are pushing back against the Trump administration’s plans to restrict business transactions involving the WeChat app from Tencent Holdings Ltd. saying it could undermine their competitiveness in the world’s second-biggest economy.

More than a dozen major U.S. multinational companies raised concerns in a call with White House officials Tuesday about the potentially broad scope and impact of Mr. Trump’s executive order targeting WeChat, set to take effect late next month.

Apple Inc., Ford Motor Co., Walmart Inc. and Walt Disney Co. were among those participating in the call, according to people familiar with the situation…

Apple is among the U.S. companies with the most at stake. Being forced to remove the app from its devices could be devastating. Analyst Ming-Chi Kuo at TF International Securities projected that global iPhone shipments could fall by as much as 30%, if such a ban goes into effect.

My take: Bull in a China shop.

2 Comments

  1. Fred Stein said:
    I like your call, “Bull in a China shop.”

    There’s no doubt about the wrong doings and threats posed by China. Throwing wild punches won’t win this fight.

    2
    August 13, 2020
  2. Joe Murphy said:
    “Bull in a China shop”

    What would you expect? Although there have been 3 other “bulls” whose job was to guard the hen house, this is the first “bull” to acknowledge the china  shop’s transgressions and call them on it.

    It’s arguable that these transgressions were foreseeable, even expectable and the longer enforcement delayed the more disruptive it would be. However, it was convenient to let it slide; after all it wouldn’t be on their watch.

    I am grateful this bull has the drive and stamina to hold the china shop accountable to its agreed standard practices before it gets even more belligerent AND stronger, militarily and economically.

    Think about this for a moment. Jerry clearly described the meeting of CCP, EU Trade Commish and 15 of Europe’s senior business leaders, where the Chinese Vice-Premier acknowledged their complaints then stated even so, they would not stop doing business with China.

    The price, the world’s price, in further delaying holding their feet to the fire will be catastrophic.

    2
    August 13, 2020

Leave a Reply