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| Apple warns the White House about the effects of the WeChat ban |
Apple has warned the Trump administration about the implications of banning WeChat from its platform, as the White House learned that the ramifications for US companies could be dire.
The Wall Street Journal reports that US multinationals are boycotting the Trump administration's plans to restrict commercial transactions, including Tencent's WeChat app.
The report added that during a phone call with White House officials, more than a dozen large US companies raised concerns about the scope and impact of Trump's ban on WeChat, which is to be expected. It will take effect at the end of next month.
The two companies said that taking action against demand could harm competitiveness in the world's second largest economy.
The newspaper reported that Apple, Ford Motor Company, Walmart and Disney attended the conference call.
Other conference call participants include Intel, Procter & Gamble, MetLife, Goldman Sachs, Morgan Stanley, United Parcel Service and Cargill.
Craig Allen, president of the US-China Business Council, said those who do not live in China do not understand how far-reaching the consequences would be if US companies were not allowed to use WeChat.
Trump signed an executive order last week banning transactions with the Chinese companies behind TikTok and WeChat.
The President of the United States wants to block apps and services in China. Not only does the Executive Order prohibit TikTok and WeChat in the US, it bans all transactions with the parent company, and both regulations will take effect within 45 days.
On the conference call, it was indicated, among other things, that the scope of the request is not very clear as it only applies to all transactions in the United States or around the world, including China.
If it spreads worldwide, it could be catastrophic for Apple. Well-known analyst Ming-Chi Kuo warned this week that doing so could reduce Apple's global sales by up to 30%.
In China, WeChat is closely related to almost everything, and banning WeChat from the worldwide app store could mean the complete elimination of iPhone sales in China.
An iPhone without WeChat is basically useless in China and no one will buy it. Another problem has to do with China's response to US companies and Apple could become a target.
According to a survey published by the US-China Business Council, 86% of the more than 100 member companies said that bilateral tensions resulted in lost sales or affected their business in China.
It is worth noting that the White House has not yet resolved the issues raised by the American company, but there is still time to provide clarifications so that this matter is limited to transactions in the United States, and Apple hopes that this will definitely end.