By Tali Arbel

President Donald Trump has ordered a sweeping but vague ban on dealings with the Chinese owners of popular social media apps TikTok and WeChat on security grounds, a move China's government criticized as “political manipulation."

The twin executive orders Thursday — one for each app — add to growing U.S.-Chinese conflict over technology and security. They take effect in 45 days and could bar the apps from the Apple and Google app stores, effectively removing them from U.S. distribution.

China's foreign ministry said it opposed the move but gave no indication whether Beijing might retaliate.

Earlier, Trump threatened a deadline of Sept. 15 to “close down” TikTok in the United States unless Microsoft Corp. or another company acquires it.

TikTok, owned by Beijing-headquartered ByteDance Ltd., is popular for its short, catchy videos. The company says it has 100 million users in the United States and hundreds of millions worldwide.

The Trump administration has expressed concern Chinese social media services could provide American users' personal information to Chinese authorities, though it has given no evidence TikTok did that.

Instead, officials point to the Communist Party’s ability to compel cooperation from Chinese companies. U.S. regulators cited similar security concerns last year when the Chinese owner of Grindr was ordered to sell the dating app.

In a statement, TikTok expressed shock at the order and complained it violates U.S. law. The company said it doesn't store American user data in China and never has given it to Beijing or censored content at the government's request.

TikTok said it spent nearly a year trying to reach a “constructive solution” but the Trump administration “paid no attention to facts" and tried improperly to insert itself into business negotiations. TikTok said it would “pursue all remedies” available to ensure the company and its users are “are treated fairly.”

Tencent and Microsoft declined to comment.

On Friday, shares of WeChat’s owner, Tencent Holding Ltd., declined 5% in trading in Hong Kong. Tencent, Asia’s most valuable tech company with a market capitalization of $650 million, makes most of its money from online games and entertainment in China.

On Wednesday, Secretary of State Mike Pompeo announced an expansion of the U.S. crackdown on Chinese technology to include barring Chinese apps from U.S. app stores, citing alleged security threats and calling out TikTok and WeChat by name.

The Chinese foreign ministry accused Washington of “political manipulation” and said the moves will hurt American companies and consumers.

“The United States is using national security as an excuse, frequently abuses national power and unreasonably suppresses companies of other countries,” said a ministry spokesman, Wang Wenbin. “This is an outright hegemonic act. China is firmly opposed to it.”

Wang, who didn’t mention TikTok or any other company by name, called on the Trump administration to “correct its wrongdoing” but gave no indication how Beijing might respond.

Trump's orders say the Chinese-owned apps “threaten the national security, foreign policy, and economy of the United States." They cite the International Emergency Economic Powers Act and the National Emergencies Act and call on the Commerce secretary to define the banned dealings by Sept. 15.

WeChat, known in Chinese as Weixin, is a hugely popular messaging app that links to finance and other services. It has more than 1 billion users. Around the world, many people of Chinese descent use WeChat to stay in touch with friends and family and to conduct business in mainland China.

Within China, WeChat is censored and expected to adhere to content restrictions set by authorities. The Citizen Lab internet watchdog group in Toronto says WeChat monitors files and images shared abroad to aid its censorship in China.

Tencent also owns stakes in major game companies such as Epic Games, publisher of Fortnite, a major video game hit, and Riot Games, which is behind League of Legends.

The Trump administration already was embroiled in a tariff war with Beijing over its technology ambitions. Washington has blocked acquisitions of some U.S. assets by Chinese buyers and has cut off most access to American components and other technology for Huawei Technologies Ltd., a maker of smartphones and network equipment that is China's first global tech brand.

China-backed hackers have been blamed for breaches of U.S. federal databases and the credit agency Equifax.

In China, the Communist Party limits what foreign tech companies can do and blocks access to the Google search engine, Facebook, Twitter and other social media, along with thousands of websites operated by news organizations and human rights, pro-democracy and other activist groups.

The ruling party has used the entirely state-controlled press to encourage public anger at Trump's actions.

“I don’t want to use American products anymore,” said Sun Fanyu, an insurance salesperson in Beijing. “I will support domestic substitute products.”

Leading mobile security experts say TikTok is no more intrusive in its harvesting of user data and monitoring of user activity than U.S. apps owned by Facebook and Google.

“The U.S. thinking is that anything that is Chinese is suspect,” said Andy Mok, a senior research fellow at the Center for China and Globalization in Beijing. “They’re being targeted not because of what they’ve done, but who they are.”

The order doesn't seem to ban Americans from using TikTok, which would be nearly impossible to enforce, said Kirsten Martin, a professor of technology ethics at the University of Notre Dame.

“This is a pretty broad and pretty quick expansion of the technology Cold War between the U.S. and China,” said Steven Weber, faculty director for the Berkeley Center for Long Term Cybersecurity.

AP reporters Barbara Ortutay in Oakland, Calif., Mae Anderson in New York, Frank Bajak in Boston, Joe McDonald in Beijing and Zen Soo in Hong Kong contributed to this article.

Share:
More In Business
‘Chainsaw Man’ anime film topples Springsteen biopic at the box office
A big-screen adaptation of the anime “Chainsaw Man” has topped the North American box office, beating a Springsteen biopic and “Black Phone 2.” The movie earned $17.25 million in the U.S. and Canada this weekend. “Black Phone 2” fell to second place with $13 million. Two new releases, the rom-com “Regretting You” and “Springsteen — Deliver Me From Nowhere,” earned $12.85 million and $9.1 million, respectively. “Chainsaw Man – The Movie: Reze Arc” is based on the manga series about a demon hunter. It's another win for Sony-owned Crunchyroll, which also released a “Demon Slayer” film last month that debuted to a record $70 million.
Flights to LAX halted due to air traffic controller shortage
The Federal Aviation Administration says flights departing for Los Angeles International Airport were halted briefly due to a staffing shortage at a Southern California air traffic facility. The FAA issued a temporary ground stop at one of the world’s busiest airports on Sunday morning soon after U.S. Transportation Secretary Sean Duffy predicted that travelers would see more flights delayed as the nation’s air traffic controllers work without pay during the federal government shutdown. The hold on planes taking off for LAX lasted an hour and 45 minutes and didn't appear to cause continued problems. The FAA said staffing shortages also delayed planes headed to Washington, Chicago and Newark, New Jersey on Sunday.
Boeing defense workers on strike in the Midwest turn down latest offer
Boeing workers at three Midwest plants where military aircraft and weapons are developed have voted to reject the company’s latest contract offer and to continue a strike that started almost three months ago. The strike by about 3,200 machinists at the plants in the Missouri cities of St. Louis and St. Charles, and in Mascoutah, Illinois, is smaller in scale than a walkout last year by 33,000 Boeing workers who assemble commercial jetliners. The president of the International Association of Machinists says Sunday's outcome shows Boeing hasn't adequately addressed wages and retirement benefits. Boeing says Sunday's vote was close with 51% of union members opposing the revised offer.
FBI’s NBA probe puts sports betting businesses in the spotlight
The stunning indictment that led to the arrest of more than 30 people — including Miami Heat guard Terry Rozier and other NBA figures — has drawn new scrutiny of the booming business of sports betting in the U.S. The multibillion-dollar industry has made it easy for sports fans — and even some players — to wager on everything from the outcome of games to that of a single play with just a few taps of a cellphone. But regulating the rapidly-growing industry has proven to be a challenge. Professional sports leagues’ own role in promoting gambling has also raised eyebrows.
Tesla’s profit fell in third quarter even as sales rose
Tesla, the car company run by Elon Musk, reported Wednesday that it sold more vehicles in the past three months after boycotts hit hard earlier this year, but profits still fell sharply. Third-quarter earnings fell to $1.4 billion, from $2.2 billion a year earlier. Excluding charges, per share profit of 50 cents came in below analysts' estimate. Tesla shares fell 3.5% in after-hours trading. Musk said the company's robotaxi service, which is available in Austin, Texas, and San Francisco, will roll out to as many as 10 other metro areas by the end of the year.
Load More