US President Donald Trump's ban on WeChat especially worries companies in his own country. According to the news in the Wall Street Journal, US companies doing business in China are afraid that this ban will deal them a big blow.
The US Chamber of Commerce (AmCham) in Shanghai made a statement regarding the ban, whose scope is not yet clear, "If the order issued by President Trump is implemented too broadly, it will have huge negative effects on US companies in China."
Concern Of Failure To Contact Local Authorities
AmCham, which has 1400 members including giants like Coca-Cola and JP Morgan, surveyed more than 140 companies this month. Accordingly, if the ban affects US companies and citizens in China, nine out of 10 companies are of the opinion that they will not be able to communicate effectively with local authorities.
More than half of the respondents say the ban will result in a loss of competitiveness in the market. 42 percent think that if the ban extends to US citizens and companies in China, they will lose revenue.
Giant Companies Do Lobby Work
Large companies such as Apple, Walmart and Ford have been lobbying the White House recently. These companies are of the opinion that if the ban extends to China, the non-use of WeChat, which has become a vital business tool in this country, will create serious problems.
AmCham members say WeChat has no alternative in China. Facebook, Instagram and Twitter are banned in this country. The messaging application of Facebook, WhatsApp, is experiencing frequent interruptions. WeChat does not have a Chinese alternative. AmCham stated that Chinese officials only refer everyone to WcChat to contact them.
US Logistics Companies May Not Do Business
US logistics companies, in particular, may be unable to do business in China without WeChat. China's logistics regulatory agencies receive reports on fever measurements during the corona virus outbreak through WeChat. If the ban on this enforcement spreads outside of the United States, US logistics companies will be unable to do business in China, as they will not be able to submit their temperature reports.
AmCham President Ker Gibbs said, “China has become a less and less cash society. Lack of WeChat's mobile payment capability will put US companies at a competitive disadvantage. Customers using this application will turn to EU, China or other countries' goods instead of changing platforms for US goods ”.