Alipay ban: Trump signs new order banning transactions with some Chinese apps

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Trump on Tuesday signed an action order banning transactions with eight Chinese apps, including Ant Group’s Alipay. The order also strikes Tencent’s (TCTZF) QQ Wallet and WeChat Pay, as well as the CamScanner, SHAREit, VMate and WPS Office apps.

The “ongoing activity” of China and the ruling Chinese Communist Party “to steal or otherwise obtain data from the United States makes clear the intention to use big data collection to further the economic and security agenda. China ‘s national promotion, “the order reads in part.

It is not at all clear how effective this order will be. It is expected to take effect 45 days from now, long after Trump resigns.

Advance orders issued by Trump against Chinese tech companies have gone into trouble. An order banning WeChat downloads in the United States was temporarily blocked by a federal judge, for example. Multiple courts have also issued a temporary injunction against the administration’s attempts to ban the TikTok short-form video app.

“The Trump administration is still running through its list of sanctions to limit U.S.-China relations in hopes of encouraging China to retreat, make ties worse, and tie [President-elect Joe] Biden’s hands, “said Scott Kennedy, senior consultant at the Center for Strategic and International Studies in Washington.

He said that while the limitations on these apps are expected to be “very upsetting,” it remains to be seen whether they will be implemented.

“The Biden administration is likely to review this and all other measures that Trump has implemented through action,” he said. However, he said if the order comes to fruition, “it could deter U.S. companies in China that sell their goods and services across those platforms.”

“Expect a huge boost in the industry,” Kennedy said.

This photo taken in October shows a customer using Alipay to scan a QR payment code to make an electronic payment for a drink at a store in Beijing.

The Trump administration has been stepping up its pressure on Chinese companies in the weeks leading up to Biden taking office.

Last month, Washington lifted tough restrictions on chipmaker SMIC and other companies that cut it off from U.S. suppliers and technology. Trump also recently signed new rules that could force Chinese companies to exempt from American stock exchanges if they did not meet U.S. inspection standards.

Tensions with the United States could exacerbate problems that companies like Alibaba are already dealing with at home.

Alibaba (BABA) now facing a Chinese trust review, while their financial affiliate, Ant Group, has ordered regulators to review key parts of their work. Meanwhile, co-founder Jack Ma has disappeared from public view.

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