American companies like apple and google can land in Beijing’s response after the president trumps the WeChat ban and Tiktok ban. China’s commerce ministry said Saturday that companies added to the unreliable entities list will be prohibited from investing and trading in China as well as trading with Chinese companies and companies will not allow importing and export however Chinese government has not yet announced which companies would land on the list but state media has threatening Apple and Google could be sanctioned in retaliation.
The move of Chinese retaliation appeared to signal that China can retaliate against the USA after the Trump administration announced Tiktok and Wechat from the mobile app store, citing national security concerns however Trump said a few weeks ago he will put a restriction on Tiktok for coronavirus pandemic retaliation. The US ban of popular Chinese software like Wechat, an app that is central to Chinese communication, business as well as for regular day and it is just like a mirror for Beijing’s long-standing policy of prohibiting foreign social media companies on national security grounds.
The Chinese government first announces the unreliable entities list in May 2019 after the restriction over Huawei by the United States of America, Beijing has not unveiled details and procedure about how it would blacklist even as U.S. agencies.
U.S officials said Wechat, owned Tencent, and Tiktok would remove from apple and android U.S. app store at midnight Monday. WeChat app is usually used to transfer money from across borders mainly to Chinese business as well as for communication between citizens of China and America.
This type of retaliation would be harmful to Apple business in china, Apple one-fifth revenue comes from china. In comparison to Google, the Google market share in China is little.
The same type of the retaliation Republic of India can also face because on the ban on the Chinese app in the Republic of India it would be a disaster for a company like TATA especially their automobile business in china. Jaguar is one of the most important brands under the TATA automobile business and its growth in the Chinese market is impressive until now.
