Addressing the Threat Posed by WeChat and the Tech Supply Chain

Aug 11, 2020

Summary

Stops people in the United States from doing business with the Chinese company that owns WeChat to protect Americans' private information.

What problem does this solve?

The app WeChat, owned by a Chinese company, collects large amounts of data from its users, which could give the Chinese government access to Americans' personal information. This order protects national security by banning business deals with WeChat's owner, stopping the app's data collection in the U.S.

What does this order do?

Prohibits transactions with WeChat's parent company

Bans any transaction related to WeChat by any person or company in the U.S. with its owner, Tencent Holdings Ltd., or its subsidiaries.

Requires identification of banned transactions

Directs the Secretary of Commerce to identify the specific types of transactions that will be prohibited under this order.

Forbids attempts to avoid the ban

Makes it illegal for any U.S. person or anyone within the U.S. to try to get around the prohibitions outlined in the order.

Allows for no prior notice of restrictions

States that the government does not need to provide advance notice before identifying the specific transactions to be banned, to ensure the measures are effective.

Who does this affect?

WeChat users in the United States
Tencent Holdings Ltd. and its subsidiaries
U.S. companies conducting business with Tencent Holdings Ltd.

What is the real world impact?

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Protects national security from foreign data collection

Prevents the Chinese Communist Party from accessing the personal and private information of Americans by banning the WeChat application, which automatically collects user data.

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Counters foreign disinformation and censorship

Addresses concerns that WeChat censors content considered politically sensitive by the Chinese Communist Party and could be used for disinformation campaigns that benefit the Chinese government.

When does this start?

This order sets specific deadlines for its rules to take effect.

Prohibition on WeChat transactions

Beginning 45 days after August 6, 2020, transactions related to WeChat with its parent company, Tencent Holdings Ltd., are banned.

Identification of banned transactions

Within 45 days of August 6, 2020, the Secretary of Commerce must identify the specific transactions that are prohibited.