On January 20, the reins of US government should be transferred to Joseph Biden, but so far Donald Trump continues to exacerbate the trade split with China. His new decree prohibits the use of eight Chinese apps in the United States, including Alipay, known to many Aliexpress customers. The US Department of Commerce must determine which transactions will be prohibited.
According to Reuters, the American authorities once again find the activities of Chinese companies in the United States as a threat to national security, since specialized applications collect a “detailed dossier” on the country’s citizens using personal information. The blacklist includes QQ Wallet, WeChat Pay, CamScanner, SHAREit, Tencent QQ, VMate, WPS Office and Alipay.
The US presidential decree sets aside 45 days for the Department of Commerce to determine the list of transactions that are subject to further ban. According to Reuters, the department is going to meet the deadline until January 20 to be in time for the inauguration of Joseph Biden. The latter, technically, can cancel this decree, but so far representatives of his team have not responded to this initiative of the current president.
In its home country, Ant Group, which owns the payment service Alipay, is now also the subject of antitrust proceedings. Back in November, the US authorities tried to prohibit American investors from participating in the public offering of Ant Group shares, but the Chinese authorities acted ahead of the curve, removing this issue from the agenda. November statistics show that Alipay received about 4.4% of its revenue outside of China, so a ban on activities in the United States is unlikely to seriously undermine the service’s position. Shares in parent company Alibaba in yesterday’s auction managed to sag in price by 2%.
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