Trump Regulation of Chinese Companies

So Trump announced that he signed an executive order giving 45 days for American companies to sever ties with WeChat (owned by Tencent) and TikTok. Obviously this led to major Chinese stocks dropping a fairly large amount today. Tencent (-7.46%), Alibaba (-5.90%), JD.com (-4.73%).

Do you think the WeChat ban will likely go through or will it not go through in the end? Microsoft are in talks to buy TikTok which is a high possibility. But WeChat is owned by Tencent and there’s no chance of them selling it so I’m not sure where that leaves the app. Obviously the main user base is in China and other East Asian countries, so I’m wondering how big this impact will even be on Tencent in the long run. I am invested in Tencent so I’m curious what the outlook on them is now I feel like it shouldn’t have too big of an impact in the long run due to them being fairly diversified across various other areas like gaming. Also I’m wondering if Trump will go after companies like Alibaba next which I hope he doesn’t being invested Alibaba too.

Also do you think the corresponding dip of US tech stocks today was linked to Trump’s China activities or unrelated and just normal movement?

Seems like standard Trump distraction to deflect from other issues:

  • handling of the response to the virus, and it’s impact on the economy

  • congress unable to agree further financial support to extend/replace the measures expired

  • Deutsche bank handing over Trump’s tax records in an apparent fraud investigation in New York

  • Chinese blatantly ignoring the previously agreed trade “deal”

  • He’s given two disastrous long form interviews in as many weeks

  • Significantly behind Biden in the polls (assuming they have any merit after last time).

The Chinese have been pretty measured in their responses to Trump through his tenure, but it must be tempting to cause some mischief with the big US tech firms operating in China.

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Makes sense, Trump often deflects from his own incompetencies by putting focus and placing blame on others, often China. It’s odd because to me it seems that the US relies on China a lot more than hte US relies on China especially with manufacturing for major US companies. If Trump keeps going at China they really could just F up a lot of the major US tech companies manufacturing chains which would then F up the US economy a lot more than Trump can damage the Chinese economy.

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