The new cold war: China vs USA

by | Sep 20, 2020 | International | 0 comments

The feud between United States of America and China is ever increasing and the recent ban of the sale and upgrading of TickTock and WeChat by US app stores shall worsen the already strained relations between the world’s two largest economies.

The retaliation by China shall have more ripple effects on the two nation’s technological sectors and the world will not be spare either .

The bans, announced on Friday, affect only new downloads and updates and are less sweeping than expected, particularly for TikTok, giving its parent group ByteDance some breathing space to clinch an agreement over the fate of its U.S. operations.

WeChat, an all-in-one messaging, social media and electronic payment app, faces more severe restrictions from Sunday. Existing TikTok users, on the other hand, will see little change until Nov. 12 when a ban on some technical transactions will kick in, which TikTok said would amount to an effective ban.

“We disagree with the decision from the Commerce Department, and are disappointed that it stands to block new app downloads from Sunday and ban use of the TikTok app in the U.S. from Nov. 12,” the company said in a statement. “We will continue to challenge the unjust executive order.”

China’s Commerce Ministry expressed its “resolute opposition” and urged the United States to stop its bullying and wrongdoing.

“If the U.S. side obstinately clings to its course, China will take necessary measures to resolutely safeguard the legitimate rights and interests of Chinese companies,” it said, without elaborating.

Trump on Friday did not indicate whether he would back a TikTok deal. He said a deal “could go quickly.”

“We have some great options and maybe we can keep a lot of people happy,” Trump told reporters. “We have to have the total security from China.”

Commerce Secretary Wilbur Ross told Fox Business Network that “the basic TikTok will stay intact until Nov. 12.”

The move by the Trump administration has prompted a response from Beijing which has also banned Twitter ,Facebook,WhatsApp from being accessed in China mainland and its other parts like Hong Kong,Macau,Tibet. The ever increasing feud between these two nations are likely to affect companies like Apple as China is mooting banning the sale of the Apple phones,Macbooks plus its other accessories and this will affect the revenue of Apple as China is the biggest market of Apple products.

The Chinese government early this year made a law which shall ban the purchase of any computer which has US components by all the government entities and all those affiliated to Chinese government.


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