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Sep 20th, 2020 Comments Off on Fallout Between The US And China Will Not Affect Chinese Companies

Fallout Between The US And China Will Not Affect Chinese Companies

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Meanwhile, CLSA tech analyst told CNBC that Chinese companies wouldn’t be affected with the fallout between the US and China because they do not rely on international suppliers for parts and technology. The impact on China’s internet companies would be relatively smaller compared to the telecom equipment industry because China has no overseas value chain. More than 80% to 90% of internet revenue come from China.

Beijing-based ByteDance has rejected Microsoft’s bid to buy video-sharing app TikTok. Oracle will be TikTok’s technology partner and will take a significant role in the business. The White House required ByteDance to sell TikTok’s US operations otherwise, the app will be banned by September 29.

Another executive order has targeted WeChat app, a predominant social messaging and social platform in China. If WeChat is banned, it will affect the revenue of US businesses operating in China. The revenue gained by WeChat in the US is only less than 2% of its total earnings. While companies try to boost their international revenues, China will focus on mobile game development.

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