September 18, 2020: The Trump Administration announced today that WeChat is to be banned from U.S. app stores as of Sunday. The ban will restrict the transferring of funds or processing of payments through WeChat within the United States as of Sunday. It will also prevent any provision of internet hosting, content delivery networks, internet transit or peering services to WeChat, or using the app’s code in other software or services in the United States.
Our experts debated the legalities, practicalities, and consequence of a potential ban on WeChat in early September. Listen to the audio of this discussion to learn more about this contentious issue: https://podcastaddict.com/episode/112064309
Our panelists included Nelson Dong, Partner at Dorsey & Whitney and a nationally known expert on export controls and sanctions, Paul Krake, Founder of View from the Peak and Co-founder of the US-China Series, and Kevin Shimota, former WeChat Global Marketing Manager.
Some of the key takeaways are:
- While it won’t be clear until September 20 what the EO’s keyword “transaction” entails, there will be a “structured process” with regards to what is banned and what is not.
- The ban is a microcosm of a number of government policies, including the current administration’s “whole-of-government” approach on national security, efforts at economic decoupling with China, and a mismatch between fast-paced technology innovation and government policies and laws.
- If the ban goes into effect, it will affect small businesses with limited resources much more than big corporations who have lobbying power. This will make U.S. companies’ entry and expansion into the China market more challenging. Chinese businesses in the U.S. that rely on WeChat for their marketing and sales will be severely impacted. In addition, the ban will have tremendous social impact given it serves as a major communications tool for the Chinese diaspora in the U.S.
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