The new President of the United States, Joe Biden, has stopped legal proceedings against Chinese social media apps TikTok and WeChat.
Former President Donald Trump tried to ban WeChat and TikTok while in office on the grounds that it posed a national security threat. Trump’s legal proceedings against Chinese social media practices while in office have been paused by Joe Biden.
Legal proceedings suspended for Chinese social media companies
The new U.S. administration has requested that legal proceedings be suspended while it reviews whether the practices actually pose a threat.
As a result of the postponement specified in the legal documents, he will be able to continue working in the United States in both applications. As you may remember, Trump claimed that the proliferation of mobile apps developed and owned by Chinese companies in the United States threatened “the national security, foreign policy and economy of the United States”.
When we look at the U.S. place of apps that have been legally traded, WeChat has more than a billion users worldwide, but the company says it accounts for only 2% of U.S. revenue.
In addition, the video sharing app TikTok has about 800 million users worldwide, 100 million of which are in the US.
Let’s also mention that byteDance, the owner of the app, is in talks with software company Oracle and supermarket giant Walmart to finalize a deal that would see TikTok’s U.S. assets transferred to a new business to avoid a ban in the country.