A new document clarifying the Administration's plans says that companies such as Apple and Google may be required to remove TikTok even from their App Stores in China.
Following President Trump's Executive Order banning TikTok and WeChat from September 20, a new White House report seeks to clarify precisely what the ban entails. The document is not a final plan, but it was reportedly sent out to supporters of the Administration and of the ban.
According to Reuters, the new White House document says that the ban is aimed at disrupting TikTok's funding, as well as its use within the United States. While TikTok is named in the document, its scope is about US business transactions with it and other similar companies.
"Prohibited transactions may include, for example, agreements to make the TikTok app available on app stores." it says, "[plus] purchasing advertising on TikTok, and accepting terms of service to download the TikTok app onto a user device."
This document was reportedly written last week, as was the more vaguely-worded Executive Order. While the new details do not tie the government down to specifics yet, it is an indication that a complete app store ban is being considered.
Removing TikTok from the US App Store and Google Play Store would mean a reported 100 million Americans having to give up the app. It's estimated that TikTok on its own has 400 million users in China who would also be affected, however.
Presuming that the new document's plans also cover WeChat as the Executive Order does, though, total removal from the App Store is likely to prove an issue for US firms such as Apple. Currently it's estimated that some 1.7 billion people in China use WeChat, although only a fraction of those will be using iPhones.
The impact will be from how the use of WeChat is so ubiquitous in China that a phone unable to run it is at a serious disadvantage. Analyst Ming-Chi Kuo has estimated that Chinese iPhone sales may drop as much as 30% under this situation.
Neither TikTok nor WeChat have commented on the new White House document. However, TikTok has previously said it intends to sue to keep operating in the US.
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I can't see this as anything other than an abuse of government powers.
It used to be that sovereign nations were aware of limitations on the sale of US products to third parties before purchase.
I think that's a reasonable approach to applying restrictions but changing the rules at short notice for doubtful reasons and in the concealed name of protectionism but claiming national security concerns AFTER the sale, well that can only end badly because countries and companies will only see the US as an unreliable entity willing to do anything to get its way. In that scenario, the US will find itself in isolation as the world shuns its products.
We've seen this with Huawei and now with Tik Tok. If WeChat is affected too, it won't be long before Tim Cook is dining at the White House to try and drive a message into Trump's head.
China just made Apple ban a Swedish artist from iTunes in China after she ended a deal with Huawei (https://www.scmp.com/news/world/europe/article/3096030/its-not-something-i-stand-behind-swedish-singer-cuts-ties-huawei).
If the governments starts to demand bans from all markets, not just their local one, things might get interesting real quick in this "war"; and either Apple must open up their store and allow a Chinese "sub-store" handle that market (on equal footing with any other competitor), or Apple might have to pull out of China. Because you simply can't not have WeChat in China.