WeChat Ban to Affect Severely the Income of American Companies in China
- On August 28, 2020
The US government’s suppression of WeChat has a negative impact on American companies in China.
The American Chamber of Commerce in Shanghai launched an investigation into its members and asked if the WeChat ban applies to American companies and American citizens in China, what impact will it have on companies? The survey results show that American companies in Shanghai believe that the WeChat ban will seriously affect their competitiveness and income.
- Among the 142 respondents, 88% believed that the inability to use WeChat would have a negative impact on company operations;
- 56.3% expect the company to lose its competitiveness;
- More than 40% of the respondents believe that the WeChat ban will have a negative impact on their revenue;
More than one-third of the respondents expect the company’s global revenue to suffer losses；
- 88% of respondents said that they use WeChat as the main tool for communicating with employees;
- 78% of respondents use WeChat for company marketing;
- More than 36% of the respondents said they have a cooperative relationship with WeChat parent company Tencent.
The American Chamber of Commerce in Shanghai stated in a report that more than 70% of the companies surveyed said that if the executive order is limited to transactions within the United States, it will have little or no impact on their income.
For American companies in China, losing use of the WeChat platform poses a threat to their survival.