The trade ban on the Chinese apps WeChat and TikTok does not seem to apply to other companies owned by Tencent. The White House has informed the LA Times. All transactions with ByteDance would be banned.
Earlier this week, President Trump signed two presidential regulations prohibiting US companies from doing business with TikTok and WeChat, two popular Chinese apps. However, since WeChat is owned by Tencent, it was unclear whether the trade ban also applies to other companies in which Tencent has invested. The decree states that the prohibition applies to ‘Tencent Holding and subsidiaries’.
The White House has now clarified that companies owned by Tencent are not directly subject to the decrees, it writes. a journalist for the Los Angeles Times on Twitter. The regulations would only stop transactions related to WeChat, the White House reports. However, according to financial news agency Bloomberg, all transactions with TikTok parent company ByteDance will be blocked.
Tencent is the largest game company in China and, among other things, owns parts of Epic Games, the maker of Fortnite. A small percentage of Activision-Blizzard is also owned by the Chinese company. Riot Games, the developer behind League of Legends and Valorant, is wholly owned by Tencent. The company also invested $ 150 million in Reddit in 2019. The Tencent Pictures branch has participated in Western films such as Men in Black International and Venom. For the time being, these companies will therefore remain outside the scope of the trade ban.