Probably, there is no smartphone owner left in the world who would not use instant messengers. This is convenient for daily communication, keeping in touch throughout the day, and transferring files. According to various estimates, the most popular messenger in the world is WhatsApp, but there are others. For example, WeChat, which is very popular in China, does not lag behind WhatsApp very much, but is taking an increasingly strong position. Now the question arose about blocking this messenger (like the whole Chinese one). It would seem that this is so, but this can affect the entire smartphone industry and very much change not only the ratio of devices, but even the business connections that exist between companies. This is the case when it's best not to touch, but who cares?
Banning this messenger will backfire on everyone.
Banning TikTok in the USA
Everyone knows the story of how Donald Trump threatened to block TikTok and, apparently, is going to do so if someone from American companies does not buy it with all the servers and other giblets. Although there is also some muddy story here and it is not completely clear, companies are prohibited from buying TikTok or, on the contrary, they are being pushed to do so.
Now, a new story has surfaced that Trump may prohibit American companies from having a relationship with the WeChat messenger. If this happens, then this alignment can become a real problem not only for companies, but also for users. The fact that American companies have already taken up arms against such a decision is further evidence of this.
WeChat ban in the US
Wall Street Journal sources report that Apple, Intel and numerous non-tech companies (including Disney, Ford and Walmart) “have raised concerns” about the extent of the interop ban with WeChat. Companies want the Trump administration to clarify procedures and ease restrictions.
Companies fear they might be completely excluded from WeChat messaging. It would seem that there are other excellent instant messengers, but they cannot replace communication with the Chinese. It is the companies from the Middle Kingdom that are now important partners for many, and it is necessary to communicate with them somehow.
There are too many people in the world using WeChat, and in China, everyone.
In China, the WeChat messenger has long gone beyond simple communication between people. Now it performs the functions of a social network, payment system, file sharing and much more. As a result, almost all digitally active Chinese use WeChat and are not going to change anything. Even when I was talking with representatives of this country at work, I had to switch to WeChat. They did not want to change anything in their lives in any way.
As a result, American companies may find themselves on the brink of major changes that lead to disruption of contacts, but that's not all. Companies themselves can lose huge amounts of money.
Smartphone sales in China
For example, if a popular in China Apple is banned from uploading the WeChat application in the App Store, this can become a real problem that will reduce the company's popularity in the market. A market that represents one fifth of the world's population. Of course, local regional restrictions can be introduced, but a complete ban on WeChat can be costly for the company. Eminent analyst Ming-Chi Kuo, whose predictions for Apple almost always come true, predicts in this case a 30% decline in sales Apple in China. No one needs a smartphone that cannot be loaded with the country's main app.
Apple just can't lose WeChat.
Such a ban will lead to an increase in the number Android – smartphones in China. The application can be installed via the APK and can be used safely. If this happens, what smartphones will people buy? Of course Huawei, which is already popular in this country. It is in this market that the company manages to pull sales to such a level that for two quarters in a row it is the leader in sales in the world. Just imagine how the company would benefit from the fact that millions of Chinese people give up iPhone. As a result, this could shift the price balance for all smartphones in the world. For example, due to the fact that Apple will have to revise their pricing policy, and along with the rest.
Other companies can potentially lose a lot of money too. If the Chinese partners have already had complaints (and they have been in the light of massive bans and sanctions recently), then communication problems can become the last straw of patience. As a result, the US presidential administration needs to think hard about what such an action could lead to.
Why do they want to ban WeChat
The reason for the potential ban of the messenger is simple to the point of banality. He, like other Chinese companies (and services), is accused of collecting user data. To put it simply, espionage for the Chinese government. China allegedly collects “huge amounts” of data from users, potentially subjecting Americans and Chinese immigrants to the United States to surveillance by the Chinese Communist Party (CCP). Tencent, which owns the WeChat messenger, claims to guarantee the safety of user data, but who will believe it, even if it really is?
The inability to accept payments will put an end to the relationship of many companies and people with China.
WeChat allows you to not only chat and place ads, but also accept payments. This also potentially makes it possible to track what the Americans are doing. The only problem is that it also allows you to settle accounts with the residents of China. Simply put, there are more problems and fewer solutions. Let's see what happens next, but so far we are on the verge of big changes every day.