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Trump preps bans on WeChat, TikTok, stoking tension with China

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Photo credit Reuters
(Last Updated On: October 25, 2022)

U.S. President Donald Trump has unveiled sweeping bans on U.S. transactions with the Chinese owners of messaging app WeChat and video-sharing app TikTok, escalating a high-stakes confrontation with Beijing over the future of the global tech industry.

The executive orders announced Thursday and effective in 45 days come after the Trump administration this week flagged increased effort to purge “untrusted” Chinese apps from U.S. digital networks, calling Tencent Holdings Ltd’s <0700.HK> WeChat and Bytedance’s popular TikTok “significant threats.”

China said on Friday the companies comply with U.S. laws and regulations and warned that the United States would have to “bear the consequences” of its action.

“The U.S. is using national security as an excuse and using state power to oppress non-American businesses. That’s just a hegemonic practice,” foreign ministry spokesman Wang Wenbin told a media briefing.

TikTok has come under fire from U.S. lawmakers over national security concerns surrounding data collection as distrust between Washington and Beijing grows. Reuters on Sunday reported that Trump has given Microsoft Corp <MSFT.O> 45 days to complete the purchase of TikTok’s U.S. operations.

“We are shocked by the recent Executive Order, which was issued without any due process,” TikTok said in a statement on Friday, adding that it would “pursue all remedies available to us in order to ensure that the rule of law is not discarded”.

The ban on U.S. transactions with Tencent, one of the world’s biggest internet companies, portends further fracturing of the global internet and severing of long-standing ties between the tech industries in the United States and China.

“This is the rupture in the digital world between the U.S. and China,” said James Lewis, a technology expert with Washington-based think-tank Center for Strategic and International Studies.

“Absolutely, China will retaliate.”

On Wednesday, U.S. Secretary of State Mike Pompeo expanded a program dubbed “Clean Network” to prevent various Chinese apps and telecoms firms from accessing sensitive information on U.S. citizens and businesses.

Trump’s new orders appeared coordinated with Pompeo’s announcement, Lewis said.

“We are reviewing the executive order to get a full understanding,” a Tencent spokesperson said.

ByteDance declined to comment.

WeChat has been downloaded a relatively small 19 million times in the United States, showed data from Sensor Tower. In China, however, the app is ubiquitous as a medium for services as varied as games and payment. It is also a common platform to communicate with individuals and businesses outside China.

U.S. social media and messaging services such Facebook Inc’s WhatsApp and Messenger are blocked in China, where a “great firewall” prevents citizens from freely accessing the worldwide web, and where online communication is routinely monitored and censored.

U.S. concerns about China’s tech industry had until recently focused on telecom equipment vendor Huawei Technologies Co Ltd [HWT.UL]. As relations soured over a host of economic and human rights issues, it has sanctioned numerous other Chinese tech firms.

Tencent is the biggest target yet. It is Asia’s second most-valuable company after Alibaba Group Holding Ltd <BABA.N> with a market capitalization of $686 billion, and is among the world’s largest social media and video game companies. It opened a California gaming studio this summer and owns minority stakes in numerous gaming and internet firms around the world, including U.S. messaging app operator Snap Inc.

Trump’s order sent Asian stock markets lower on Friday, with Tencent shares falling as far as 10.1% before recouping some of its losses in afternoon trade. [MKTS/GLOB]

The yuan, a barometer of Sino-U.S. relations, posted its steepest drop since the United States expelled China from its Houston consulate a little over two weeks ago. [CNY/]

Trump issued the orders under the International Emergency Economic Powers Act, a law that grants the administration sweeping power to bar U.S. firms or citizens from trading or conducting financial transactions with sanctioned parties.

Commerce Secretary Wilbur Ross will identify transactions covered after the orders take effect in mid-September.

Tension has been simmering between the two powers for months, with the United States taking issue with China’s handling of the novel coronavirus outbreak and moves to curb freedoms in Hong Kong. The increasingly aggressive posture towards China comes as Trump bids for re-election in November.

Trump said this week he would support Microsoft’s efforts to buy TikTok’s U.S. operations if the U.S. government got a “substantial portion” of the proceeds. He nevertheless said he will ban the popular app on Sept. 15, though some Republicans have raised concerns about potential political fallout.

The app may be used for disinformation campaigns that benefit the Chinese Communist Party, and the United States “must take aggressive action against the owners of TikTok to protect our national security,” Trump said in one order.

In the other, Trump said WeChat “automatically captures vast swaths of information from its users. This data collection threatens to allow the Chinese Communist Party access to Americans’ personal and proprietary information.”

The United States is not alone in its concern about Chinese internet apps: WeChat and TikTok were among 59 mostly Chinese apps that India outlawed in June for threatening its “sovereignty and integrity”.

The WeChat order would effectively ban the app in the United States by barring “to the extent permitted under applicable law, any transaction that is related to WeChat by any person, or with respect to any property, subject to the jurisdiction of the United States, with Tencent Holdings Ltd.”

It was not clear whether the sanction would effect Tencent’s other holdings in the country.

Meanwhile, WeChat users in the United States were quickly evaluating alternatives.

“Banning WeChat is against America’s liberal principles,” Jeason Ma, a 33-year-old in Los Angeles who obtained U.S. citizenship in November, told Reuters. “Most of our family and friends are in China. This will cause significant inconvenience to our lives.”

Ma has been sharing his account information for WhatsApp and messaging rival Line Corp with friends and family, fearing he could lose access to WeChat.

The order “calls TikTok a national security threat,” said Derek Scissors, an expert on Sino-U.S. economic relations at the American Enterprise Institute think-tank. “Either we’ve missed the threat for three years or it just became one and yet we are waiting 45 days.”

Source: Reuters

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2023 marred by ‘tremendous challenges’ for Afghanistan

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(Last Updated On: April 18, 2024)

Last year, 2023, was a year of “tremendous challenges” for the people of Afghanistan, but it was also a year marked by resilience and determination, the Deputy Special Representative of the Secretary-General, Resident and Humanitarian Coordinator, Indrika Ratwatte, said in the UN’s annual report on Afghanistan that was published this week.

Ratwatte said: “In the face of adversity and multiple concurrent shocks, the people of Afghanistan have demonstrated remarkable courage and strength.”

Afghans now mention access to food as their most pressing need, he said adding that “unable to pay for or produce basic sustenance, millions face hunger and malnutrition.”

In 2024, an estimated 15.8 million people will experience crisis and emergency levels of food insecurity.

The majority of the population is unable to procure basic needs such as healthcare, food, livelihoods, and housing, the report stated.

The UN found that the country also remains vulnerable to climate change.

Following the worst drought in three decades, emerging El Niño conditions now threaten a new cycle of flooding and crop pests. In this context, lifesaving humanitarian aid has been crucial in preventing the collapse of the social fabric. It has also served to underpin the stability of the economy. Despite growing humanitarian needs, relevant funding cuts have forced humanitarian actors to prioritize the most vulnerable further, the report stated.

A Gallup poll found that 95 percent of the population consider themselves to be suffering. In addition to living in poverty, the average life expectancy in Afghanistan has been falling for the past five years.

The Herat earthquakes and unprecedented large-scale returns of refugees from neighbouring countries, including Pakistan and Iran, have shown the disruptive impact of recurrent shocks and underscored the need for sustained international engagement and support, the UN stated.

“As we embark on the next chapter, in 2024, it is imperative that we remain steadfast in our commitment to the principles of human rights, gender equality, and women’s Empowerment,” Ratwatte said.

“We will continue to include women as key partners in our work, to provide assistance ‘by women, for women’, and to tirelessly work for equal access to education in line with the demands we hear from Afghans in all areas of the country,” he said.

However, from an economic point of view, Afghanistan’s economy appears to be stabilizing at a low equilibrium level following a period of significant contraction since 2021.

The UN said in the report that growth barriers include severely restricted operations in the banking sector (including microfinance institutions), trade disruptions, and institutional issues hindering service delivery, including in the private sector.

“The sudden cessation of a significant amount of international aid and grants, which had accounted for 40 percent of the country’s Gross Domestic Product (GDP), along with a freeze on international reserves amounting to about US$9 billion and the imposition of international sanctions, caused a severe balance of payments, banking and payment systems crisis.

“Notably, financial restrictions have removed liquidity from the banking system,” the report stated.

Despite the crisis and a period of devaluation towards the end of the year, the AFN is 20 percent stronger than it was in 2021 due to currency export controls, UN cash shipments of US dollars into Afghanistan, and personalremittances.

Imports continued to surpass exports through 2023 and increased as the economy contracted.

“This appears to be a paradox: the currency appreciated while the trade deficit widened, suggesting that there might be other unidentified sources of financing besides US dollar cash shipments and remittances to support the account deficits,” the report read.

The UN also said that with its partners, it will work to initiate a dialogue with the Islamic Emirate on adjustments to regulatory frameworks and sustained public service delivery with the aim of creating a long-term and sustainable pathway to reduce aid dependency and put Afghanistan back on a path towards development

“In this regard, we reiterate our offer to the DFA for a dialogue and will work jointly with international partners, donors, and Afghans on how such engagement can be structured in a most productive way.”

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Beijing hosts Afghan delegation for talks on a wide range of issues

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(Last Updated On: April 18, 2024)

The third meeting of the China-Afghanistan working-level liaison mechanism on humanitarian assistance and economic reconstruction was held in Beijing this week where in-depth talks were held on numerous issues relating to Afghanistan.

Liu Jinson, Director of the Asian Department of China’s Ministry of Foreign Affairs, and Jalali, Director of the Third Political Department of the Ministry of Foreign Affairs of Afghanistan, co-chaired the Beijing meeting.

Also in attendance were representatives from various Chinese commissions, government departments, international aid organizations, as well as the Afghan Ministry of Commerce and Industry, the Ministry of Mines and Petroleum, the Ministry of Disaster Management, and the Ministry of Refugee Affairs.

Quoting an Afghan proverb, Liu said at the meeting that “friends come and go, but neighbors always remain.”

He pointed out that since 2021, China has implemented a diplomatic concept of amity, sincerity, mutual benefit and inclusiveness that was proposed by President Xi Jinping in terms of Beijing’s dealings with Afghanistan.

China has also adhered to a friendly policy towards all Afghan people, and adhered to the principle of respect for the country’s independence, sovereignty and territorial integrity.
He also said that during the different regimes in Afghanistan, China has always provided support and assistance for Afghanistan’s peaceful reconstruction and economic development.

The Afghan delegation meanwhile stated that the Islamic Emirate attaches great importance to developing relations with China, and thanked China for taking the lead in sending a new ambassador to Afghanistan and accepting the appointment of an ambassador to China.

The Islamic Emirate said Afghanistan is willing to deepen friendly relations with China, maintain traditional friendship, and will, as always, support China in safeguarding its core interests and achieving national reunification.

The two sides agreed in the meeting that Afghanistan is currently facing multiple challenges such as floods, droughts, and refugee resettlement, among other issues.

They also noted that the freezing of Afghanistan’s foreign assets by the United States has “aggravated the suffering of the Afghan people.”

The IEA stated however that it was “very grateful to China for its humanitarian assistance over the years and hopes to continue to receive help from China in refugee resettlement, disaster prevention and mitigation, improvement of medical and health conditions, and treatment of children with congenital heart disease.”

On the Belt and Road initiative, the IEA delegation said Afghanistan is deeply satisfied with the progress in practical cooperation between the two countries. They also said Afghanistan is willing to learn from China’s experience in modernization and development, and hopes that China will help Afghanistan cultivate more professional talents.

China meanwhile urged the international community to step up humanitarian assistance to Afghanistan, and said Beijing hopes the IEA will “actively respond to some of the international community’s reasonable concerns about Afghanistan’s inclusive governance.”

Liu in turn acknowledged the IEA’s efforts to promote economic reconstruction and said bilateral trade volume between China and Afghanistan reached US$1.33 billion last year, a record high and a year-on-year increase of 125.4%.

The Islamic Emirate meanwhile said in posts on X that the issue of investment opportunities in Afghanistan was widely discussed and both sides welcomed moves to pave the way for the export of pomegranates.

“Also, both sides talked about the latest developments in increasing the level of oil extraction in Afghanistan and starting the extraction of Logar’s Mes Aynak mine and it was emphasized that plans should be considered to speed things up,” the IEA stated.

“The Afghan side welcomed the capacity building training programs of civil servants in many ministries and agencies of the Afghan government with the support of China. In addition, the Chinese side promised to expand the range of scholarships to Afghan students according to the needs of Afghanistan,” the IEA stated.

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UN builds 470km of water canals in Afghanistan in past year

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(Last Updated On: April 18, 2024)

The United Nations has built 470 kilometers of much needed water canals in Afghanistan in the past year in cooperation with local communities, the World Food Program (WFP) confirmed.

WFP in Afghanistan said in a post on X, formerly Twitter, on Wednesday that the canals were built in order to provide access to water to more people across the country.

The agency said the people “in Afghanistan cannot continue their lives without access to water,” adding that the canals help farmers irrigate crops, which allows them to feed their families and sell surplus produce.

This comes after years of drought across the country. However, in the past few months, good rain has been recorded which will hopefully result in good harvests this year.

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