“Trump’s Presidential Order Applies to the Wichat App Only”

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Complete or partial boycott? Depends on who you ask. Last week, US President Donald Trump signed orders banning transactions with Chinese internet giant Tencent and Tiktok – the orders are expected to take effect in mid-September.

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So far it has been assumed that the order applied to all of Tencent’s business – chief among them the popular messaging app WeChat (which is also a payments app and social network) and its gaming division.

Today, however, the company announced that it understands that the order only applies to WiChat operations in the United States and not to the rest of its business in the country.

Tensent headquarters Photo: The Business Times

The company’s chief financial officer John Lo said today that it is conducting an investigation with the relevant authorities on the scope of the presidential order, but that is Tencent’s working assumption.

Lou said these things during the conference call the company held after the reports were published. He stressed, among other things, that the Weixin application is not identical in its characteristics to the corresponding application operated by the company in China under the name Weixin (whose mark is the same).

Tencent ended the second quarter with a 29% increase in revenue to 114.88 billion yuan ($ 16.53 billion), compared to $ 112.72 billion in the same quarter in 2019.

Revenue from the gaming division – which is very important to Tencent – climbed 40% to 38.29 billion yuan. The company posted a 37% jump in net profit to 33.1 billion yuan in the quarter, compared to 27.56 billion yuan in the same quarter

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