The United States’ Commerce Department revealed plans to beginning from today the 20th of September 2020, ban the WeChat and TikTok applications from all application stores in America in an attempt to ensure that the security interests of the country are protected.
All WeChat and TikTok users in the United States who have the applications on their mobile devices, will no longer be able to access them following the shut down. They (the users), will also no longer have any access to any updated versions of both apps, or access to any services involving maintenance.
The announcement and decision, is in fulfilment of two (2) executive orders that were issued regarding the banning of transactions with WeChat and TikTok.
The United States government is however expected to lift the ban on TikTok as soon as the administration deals with the national security fears associated with the short video social media application by the 12th of November 2020. The government is currently observing and analysis the acquisition deal between TikTok United States and Oracle.
A press release by the United States Department of Commerce, also announced the ban of all funds transfer transaction and payment process from and to the United States, via WeChat.
The press release reads, “As of September 20, 2020, the following transactions are prohibited; Any provision of service to distribute or maintain the WeChat or TikTok mobile applications, constituent code, or application updates through an online mobile application store in the U.S. Any provision of services through the WeChat mobile application for the purpose of transferring funds or processing payments within the U.S.”
The United States government will in addition ban all content delivery network and hosting services that enable the applications function, effectively putting a stop to any and all peering or arranged internet transit services used by the applications. It will also put a stop to any utilization of their constituent codes.
The WeChat ban will be in full effect this September (2020), while the full effect of the ban on ByteDance owned TikTok, will take effect on the 12th of November 2020.
Reports also revealed that ByteDance has set plans in motion for an IPO for TikTok Global. TikTok Global, is what the new company after the recent acquisition, will be called in the United States once it secures a go ahead from the United States administration.
According to Al Jazeera ByteDance and the White House have already reached an agreement with regards to a term sheet for a number aspects of the acquisition deal which United States President Donald Trump, has not yet approved.
TikTok Global will have an American Chief Executive Officer (CEO), with the majority of its Directors also being American, and also have a security company that is American.
American multinational computer technology corporation; Oracle, agreed to a 20% stake in TikTok Global. Walmart is also speculated to be a shareholder in TikTok Global as well and could see its Chief Executive Officer (CEO), get a seat on the board of TikTok Global.
With this development, Oracle and Walmart could control as much as 60 percent of the new company.
Reports by Reuters however revealed that a number of Chinese officials are opposed to the forced sale, and have asked that the company (ByteDance); be allowed to retain majority ownership.
The Initial Public Offering (IPO) which is expected to kick off sometime in 2021, will see ByteDance cut down its overall stake in TikTok Global, as per the demands made by the United States President; Donald Trump.
China has reportedly kick started a number of measures of its own, to aid in a retaliatory restricting of foreign establishments based on sovereignty and national security breach concerns, as a result of certain decisions which have negatively affected WeChat, TikTok, Huawei and a number of other Chinese establishments.
The Chinese Ministry of Commerce on the 19th of September 2020, expressed its displeasure with the ban on WeChat and TikTok. It described the actions of the United States as wrongful and bullying and in a statement made it clear that, “If the US insists on going its own way, China will take necessary measures to resolutely safeguard the legitimate rights and interests of Chinese companies.”
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