For American companies doing business in China, the country's most popular app WeChat has become an indispensable tool to connect with local customers and authorities. Banning WeChat on all American companies and U.S. citizens in China could have a significant business impact. According to a survey conducted in late August 2020, about 41.5 percent of the surveyed American corporates which operated in China said that the ban would cost a revenue loss of their business in the Chinese market. The same survey found out that less than seven percent of the companies stated that they could find another app to replace WeChat easily without any impact on operations and revenue.
Impact of the U.S. executive order banning WeChat to American companies doing business in China as of August 2020
Characteristic
Share of surveyed companies
Negative impact on operations (unable to effectively communicate with staff and local authorities)
respondents from American companies doing business in China subject to U.S. jurisdiction
Supplementary notes
Original survey question:
If the WeChat Executive Order is applied to U.S. companies and American citizens in China and bans all transactions, how would this impact your company? (Multiple answers are available.)
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AmCham Shanghai. (August 26, 2020). Impact of the U.S. executive order banning WeChat to American companies doing business in China as of August 2020 [Graph]. In Statista. Retrieved November 09, 2024, from https://www.statista.com/statistics/1167505/china-importance-of-wechat-for-american-companies/
AmCham Shanghai. "Impact of the U.S. executive order banning WeChat to American companies doing business in China as of August 2020." Chart. August 26, 2020. Statista. Accessed November 09, 2024. https://www.statista.com/statistics/1167505/china-importance-of-wechat-for-american-companies/
AmCham Shanghai. (2020). Impact of the U.S. executive order banning WeChat to American companies doing business in China as of August 2020. Statista. Statista Inc.. Accessed: November 09, 2024. https://www.statista.com/statistics/1167505/china-importance-of-wechat-for-american-companies/
AmCham Shanghai. "Impact of The U.S. Executive Order Banning Wechat to American Companies Doing Business in China as of August 2020." Statista, Statista Inc., 26 Aug 2020, https://www.statista.com/statistics/1167505/china-importance-of-wechat-for-american-companies/
AmCham Shanghai, Impact of the U.S. executive order banning WeChat to American companies doing business in China as of August 2020 Statista, https://www.statista.com/statistics/1167505/china-importance-of-wechat-for-american-companies/ (last visited November 09, 2024)
Impact of the U.S. executive order banning WeChat to American companies doing business in China as of August 2020 [Graph], AmCham Shanghai, August 26, 2020. [Online]. Available: https://www.statista.com/statistics/1167505/china-importance-of-wechat-for-american-companies/
