As of this Sunday (20), the applications TikTok and WeChat are officially banned throughout the American territory.
“The basic Tiktok will remain intact until November 12, but users will not be able to access updates starting this Sunday. WeChat US, for all practical purposes, will be closed, ”said Commerce Secretary Wilbur Ross.
According to him, money transfers within the United States related to WeChat and its Chinese parent company Tencent Holdings Ltd. (the same company that owns 60% of Epic, developer of Fortnite) are prohibited, but Americans will still be able to use WeChat for payments and transfers to China.
This was a concern of some American technology companies and, mainly, of families in both countries – WeChat is the application used by millions of Chinese immigrants to keep in touch with relatives and send money to the other side of the world.
As the measures prohibit distribution, maintenance and updates of the two applications, Apple and Google are expected to exclude TikTok and WeChat from their application stores in the United States by Sunday. Downloaded apps will not be affected now, but will be left without updates.
TikTok Global actions
According to the Department of Commerce, November 12 is the deadline given by the American president for TikTok to resolve national security issues presented to ByteDance.
This means that the Chinese company has less than 2 months to successfully complete its agreement with Oracle and obtain approval from the American and Chinese governments for the deal.
According to sources heard by Reuters, if the partnership with Oracle succeeds, ByteDance would make an initial public offering (IPO) of the new company, TikTok Global. This would happen in 1 year, on United States stock exchanges. ByteDance and Oracle did not respond to requests for comment.