Tencent has rejected Donald Trump’s ban on its WeChat app, believing it will only affect its operations in the US.
The tech giant runs an equivalent messaging platform in China called Weixin which it hopes will not be affected.
The biggest intrusions could be Apple sales in China if its iPhones are not allowed to download Chinese messaging apps.
WeChat has more than one billion users worldwide, but says the US only 2% of its revenue.
Last Friday, US President Donald Trump ordered US firms to stop doing business with WeChat and TikTok within 45 days citing national security concerns.
TikTok̵7;s ban was expected, but again “shocked” the owners of the company ByteDance. WeChat, and its parent company Tencent, also found themselves caught up in the roar of escalating tensions between the US and China.
However, Tencent, the world’s largest gaming firm, downplayed the executive order of Mr. Trump when he reported the results of the second quarter on Wednesday. She saw a 37% increase in profits.
“If you look at the executive orders from May 2019 and then obviously the executive order a few days ago, they make it very clear that they cover US jurisdiction, and consequently we do not see any impact on the companies that advertise on our platform in China,” he said. James Mitchell, chief executive officer of Tencent.
Business analysts are unclear about the full implications of the U.S. bans on Tencent and ByteDance, and are waiting for more details.
There are fears that Apple could suffer if the ban extends to its operations in China. Experts say sales of her iPhone will be hit hard if Chinese consumers are not allowed to download messaging apps like Weixin on them.
The executive order stated that it would prohibit “any transaction relating to WeChat by any person, or in connection with any property, subject to the jurisdiction of the United States, with Tencent Holdings Ltd. (aka Téngxùn Kònggǔ Yǒuxiàn Gōngsī), Shenzhen, China, or any subsidiary of this entity “.
Mr Trump said the proliferation of mobile applications developed and owned by Chinese firms in the US “threatens the national security, foreign policy and economy of the United States”.
According to calculations made by Bloomberg, the Chinese market is worth about $ 44bn (. 33.7bn) a year for Apple.