Video games, endangered by Trump’s ban on Tencent and TikTok?

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Trump mess it up again. Although she defends the free market, she has been doing the opposite for some time instead, introducing. protectionist measures to try to favor American products. Now, after the ban on companies like Huawei and ZTE, Trump has signed a new ban against Tencent (WeChat) and ByteCent (TikTok), which has extremely dangerous ramifications for the industry.

 

Within 45 days, all companies in the United States will be prohibited from transacting with companies Tencent and ByteCent. Tencent owns the WeChat app, the Chinese WhatsApp, which is a key application in the country with one billion users. In addition, the company has significant participations within the world of video games and other parts of the industry.

Tencent owns some of the top money-making games. For example, they have 100% Riot Games, creators of League of Legends, and 84% of Supercell, creators of Clash of Clans and Clash Royale. In addition, they have 40% of Epic games, creators of Fortnite and engine Unreal Engine. They also have a significant participation BlueHell, creators of PUBG with 11.5%, in Activision Blizzard (5%), Tesla and Snapchat, in addition to agreements with the NBA, the NFL and Major League Baseball. In addition, many of its apps are in the Google and Apple stores.

White House Says Tencent Ban Only Affects WeChat

The White House has had to issue a new statement after the first due to the uproar that had formed around video games, stating that the video game companies owned by Tencent will not be affected by this new ban, and that it will only affect WeChat.

In the case of ByteCent, the company owns WeChat and TikTok. Both apps could be banned in the United States on September 20, unless TikTok sells its US branch to a company in the country, where Microsoft or Apple could get hold of it. They would also take over the company’s business in Canada, Australia and New Zealand, where they have until September 15 to do so.

WeChat has a great collaboration with the Chinese government, since it has access to personal data of users and sent messages, and can censor them at any time. In the case of TikTok security, Trump claims that it captures important user information such as network activity, location and history. Like many other US apps like Facebook.

Clean Network: Trump wants to block everything Chinese in the US

Trump has also signed the call Clean Network, where they want to avoid potential national security risks by banning applications that are based in China and may pose a risk to the data of United States citizens. They will also work to limit the use of cloud services located in China. It will also ban Chinese operators from connecting to US networks.

China is probably not going to sit idly by with this decision by Trump, in relations that continue to deteriorate over the months. Many companies in the United States depend on China to manufacture their products, which Trump does not seem to understand, so we will see if they do not decide to start making decisions related to Foxconn, where a significant number of devices from companies like Apple are manufactured. or Microsoft.