File photo shows the app for Alipay, the mobile payments service operated by Ant Group, on a smartphone in Beijing. AP
Gulf Today Report
With the end of his presidency looming, Donald Trump on Tuesday launched a crusade against Chinese apps including Alipay and WeChat Pay in an escalation of a trade war that has been unfolding through most of his term.
Trump ordered a ban on transactions linked to Chinese companies, saying they could route user information to the government in Beijing.
The order, however, goes into effect in 45 days, nearly a month after Joe Biden will be inaugurated as the next president, so the fate of Trump’s action is unclear.
The move by Trump comes after previous executive orders aimed at banning TikTok as well as the main WeChat messaging app.
"We are trying to articulate to the world and take steps to stop the encroachment of China's big data strategy -- photos, text messages, phone calls to parents -- from being fed into this mass tool for global oppression," the official said.
The fate of those apps in the US is still unclear, and with just 15 days left until Inauguration Day, it will likely fall to Biden to deal with them - or not. The same goes for Tuesday’s executive order.
A representative for Biden’s office did not immediately return a message for comment on Tuesday.
Alipay is a widely used digital wallet that is part of the empire of e-commerce billionaire and Ant Group founder Jack Ma. WeChat Pay is a rival service operated by tech giant Tencent. The others named in the order are CamScanner, QQ Wallet, SHAREit, Tencent QQ, VMate and WPS Office.
Trump’s order cites unspecified concerns about the apps collecting Americans’ personal and financial information and turning it over to China’s communist government.
The order marks the Trump administration’s latest attempt to hobble China, a rising economic superpower. Over the past several years, it has lashed out at China with tariffs that have sometimes roiled the US stock market, blocked mergers involving Chinese companies and stifled the business of Chinese firms like Huawei, a maker of phones and telecom equipment.
China-backed hackers, meanwhile, have been blamed for data breaches of US federal databases and the credit agency Equifax, and the Chinese government strictly limits what US tech companies can do in China.
Political analysts expect Biden to try to resume cooperation with Beijing on issues such as climate change and the coronavirus. However, economists and political analysts foresee few big changes due to widespread frustration with Beijing’s trade and human rights record and accusations of spying and technology theft.
But dealing with the fallout from Trump’s latest shot at China could still create more headaches for Biden on top of the ongoing efforts to fight a worsening pandemic after he takes office.
Senior Trump administration officials indicated they hadn’t consulted with the president-elect’s team before issuing the latest effort to ban more China apps. They described the apps as instruments for a communist government bent on “digital totalitarianism.”
When reporters asked why the administration was only taking these steps now with the Trump presidency down to its final two weeks, one official said the executive action should have probably been taken years ago, “but better late than never.” The officials spoke on condition of anonymity because they were not authorized to discuss the executive action publicly.
National Security Adviser Robert C. O’Brien framed the order as part of Trump’s ongoing effort to “prioritize the safety and security of the United States homeland and the American people.”
Trump’s tariffs and orders against China have raised recurring fears among US tech companies and their stockholders that China’s government will retaliate by making it more difficult to do business in the world’s most populous country. If that were to happen, among those that could be particularly hard hit is Apple, which generated $40 billion in sales in China in its last fiscal year - making it the iPhone maker’s third largest market behind the US and Europe.
Despite the worries of a backlash, Apple has emerged largely unscathed from Trump’s battel with China, enabling it to boost its market value above $2 trillion amid the pandemic.
European and US stocks climbed on Friday as investors kept a watch on developments at a G20 summit in Japan, where US President Donald Trump and Chinese counterpart Xi Jinping are due to hold key trade talks.
Trade talks between the US and China broke up on Friday with no agreement, hours after President Donald Trump more than doubled tariffs on $200 billion in Chinese imports.
Huawei subsidiary Hisilicon said that it had long been anticipating the possibility that the firm could one day be unable to obtain chips and technology from the United States and had prepared to soften any impact.
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