The trade war with China affects the country’s booming digital payments industry.
Trump bans Chinese payment applications, including AliPay and WeChat PayNOTÍCIAS.
With only two weeks to go, President Trump sent a new executive order against Chinese payment claims.
The order of 5 January prevents US citizens or persons located in the US from using nine Chinese payment claims. He continues previous White House efforts to cut off the US market for Chinese applications such as TikTok. Yesterday’s order reiterates previous concerns about the collection of data by the Chinese Communist Party:
„‚The continuing activity of the PRC and the CCP to steal or otherwise obtain data from people in the United States makes it clear that the intention is to use massive data collection to advance China’s economic and national security agenda‘.
The ATTACHED applications are AliPay, CamScanner, QQ Wallet, SHAREit, Tencent QQ, VMate, WeChat Pay and WPS Office. The implementing decree will enter into force in 45 days, when Trump will be out of service. Given the fact that his previous order for ByteDance to remove TikTok was lost in court while he was still in office, there is no reason to believe that Trump will get what he wants here.
The focus on payment requests is particularly important. The recent moves by the US national security agencies have clearly indicated their concern about the Chinese payment systems, in particular the central bank’s digital currency with a database accessible by CCP.
Many in the crypto-currency industry, as well as the technology industry in general, have warned of a technological cold war between China and the US, including Mark Zuckerberg of Facebook and several leaders of Ripple Labs. While the situation between the two countries is clearly tense, both Facebook and Ripple went through serious investigations by US regulators who were worried about their operations when they put forward these arguments, somewhat reducing the impact of their „patriotism“.
While the barriers between the private and public sectors are stark, the treatment of the private companies in China Trump targets is already very poor. The Ant Group, a fintech subsidiary of Alibaba, the owner of AliPay, recently came into conflict with the Chinese Government. Xi Jinping is said to have personally suppressed the Ant Group’s IPO, since then Alibaba’s shares have fallen and their founder, Jack Ma, has disappeared.
Another Chinese technology giant, Tencent, owns three of Trump’s target entities: QQ Wallet, Tencent QQ and WeChat pay. Although Tencent has avoided the Ant Group’s high-level battles with the CCP, the long-awaited digital currency of the Chinese central bank may well be an attempt to influence the country’s impressive fintech activities.