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Trump orders ban on dealings with TikTok's Chinese owner
by Staff Writers
Washington (AFP) Aug 7, 2020

Shares in WeChat parent plunge 10% after Trump issues ban order
Hong Kong (AFP) Aug 7, 2020 - Shares in the parent of Chinese social media giant WeChat tanked in Hong Kong on Friday after Donald Trump signed an executive order banning Americans from doing business with the platform, citing national security concerns.

Tencent plunged as much as 10 percent in morning trade before paring losses and ending the session down 6.75 percent at HK$518.00, dragging the broader Hang Seng Index down more than two percent.

The sweeping restrictions on the firm, which come into effect in 45 days, also cover ByteDance, the owner of popular app TikTok.

The move wiped almost $50 billion off Tencent's market capitalisation, with the firm having surged about 70 percent since March as global tech titans benefited from stay-at-home orders aimed at containing the coronavirus.

It also adds to a laundry list of issues that have ratcheted up tensions between the superpowers, including Hong Kong, Huawei and the spread of the virus.

"The US government is expected to follow up with more measures targeting Tencent," Steven Leung, at UOB Kay Hian (Hong Kong), said.

"Tencent's overseas expansion map now looks a bit uncertain, since some M&A deals, especially if its targets are based in the US, will face challenges."

The move rippled around Asian markets, with investors concerned about increasingly bitter relations between the economic titans that some fear could lead to a renewal of their painful trade war.

Officials from both sides are due to meet next Saturday to review a trade deal signed earlier this year.

"Apart from the obvious fallout to Tencent and ByteDance, Washington DC's moves are sure to ratchet up geopolitical tensions with Beijing once again," said OANDA's Jeffrey Halley.

-- Bloomberg News contributed to this story --

US President Donald Trump on Thursday ordered that a ban on interacting with popular social media platform TikTok or its Chinese parent company take effect in 45 days.

"The United States must take aggressive action against the owners of TikTok to protect our national security," Trump said in an executive order.

After taking effect, the order will bar "any transaction by any person, or with respect to any property, subject to the jurisdiction of the United States, with ByteDance Ltd" or any company in which it has an interest.

China-based ByteDance owns TikTok, which has its US headquarters in Southern California.

Trump's order contended the step is needed to "deal with the national emergency with respect to the information and communications technology and services supply chain."

The TikTok mobile application has been downloaded some 175 million times in the US and more than a billion times around the world, according to the order.

"TikTok automatically captures vast swaths of information from its users, including Internet and other network activity information such as location data and browsing and search histories," the order contended.

"This data collection threatens to allow the Chinese Communist Party access to Americans' personal and proprietary information."

Data from TikTok could potentially be used by China to track the locations of federal employees and contractors, build dossiers on people for blackmail, and conduct corporate espionage, the order speculated.

The Department of Homeland Security, Transportation Security Administration, and the United States Armed Forces have already banned the use of TikTok on federal government phones, according to Trump's order.

"The United States must take aggressive action against the owners of TikTok to protect our national security," the order read.

Trump, who has locked horns with China on a range of issues including trade and the coronavirus pandemic, has set a deadline of mid-September for TikTok to be acquired by a US firm or be banned in the United States.

Microsoft has expanded its talks on TikTok to a potential deal that would include buying the global operations of the fast-growing video-sharing app, the Financial Times reported Thursday.

Microsoft declined to comment on the report, after previously disclosing it was considering a deal for TikTok operations in the US, Canada, Australia and New Zealand.


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Facebook quarterly profit rockets despite ad boycott, pandemic
San Francisco (AFP) July 30, 2020
Facebook reported Thursday that its quarterly profit had nearly doubled and users grew despite a boycott by advertisers and the pandemic-induced economic turmoil. The leading social network said it made a profit of $5.2 billion on $18.7 billion in revenue in the recently ended quarter, as the number of people using the platform monthly rose to 2.7 billion. "This was a strong quarter for us, especially compared to what we expected at the start," chief executive Mark Zuckerberg said. Shares in ... read more

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