US to bar people in US from downloading TikTok or WeChat starting September 20 – Reuters

Eren Sengezer FXStreet

The US Commerce Department is planning to publish an order at 1245 GMT on Friday that will bar people in the United States from downloading TikTok or WeChat starting September 20, Reuters reported on Friday, citing three officials familiar with the matter.

Additional takeaways

"US will order Apple, Google and others to remove the Chinese apps from platforms accessible from within US."

"US will not seek to bar Google or Apple from offering TikTok or WeChat outside the US."

"US Commerce Department will not bar US companies from doing business on WeChat in China."

"US could scrap the ban on TikTok downloads if Trump approves deal to separate TikTok US assets."

Market reaction

This headline doesn't seem to be having a significant impact on the market sentiment so far. As of writing, the S&P 500 futures were up 0.1% on a daily basis. However, the geopolitical tensions could escalate and cause risk aversion if China responds to this development.

Update

The US Commerce Department has recently published an official statement confirming the order.

"In response to President Trump’s Executive Orders signed August 6, 2020, the Department of Commerce (Commerce) today announced prohibitions on transactions relating to mobile applications (apps) WeChat and TikTok to safeguard the national security of the United States," the statement read. "The Chinese Communist Party (CCP) has demonstrated the means and motives to use these apps to threaten the national security, foreign policy, and the economy of the U.S. Today’s announced prohibitions, when combined, protect users in the U.S. by eliminating access to these applications and significantly reducing their functionality."

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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