Trump, US President on Saturday, said that he could exert pressure on Chinese based companies such as Alibaba after he vowed to ban TikTok.
At a press conference, Donald Trump was asked whether any particular firms are china-owned that he is considering to Ban. In reply to that, Trump said that they are looking into things right now.
Trump: After TikTok, Next Alibaba?
The US President, Donald Trump, has been hoarding pressure on Chinese-owned companies. Including his vow to ban the short-video platform TikTok from the USA. Moreover, the officials of The United States of America have ordered ByteDance, its owner, to divest Tik Tok operations in the USA within three months.
The move is made in light to ramp up the pressure over the safety concerns. There has been a lot of questions going-on regarding the handling of personal data of Tik Tok users.
The move came hours after China’s announcement to retaliate tariffs on the United States’ goods on last Friday. Trump ordered the companies of States to start looking for an alternative to China. He furthered ordered the owners to bring your companies HOME and make your products in the USA.
As per the data, the stakes are high currently. The companies of the USA have invested over 256 billion USD in China from 1990 to 2017. In comparison to China, which has only spent about 140 billion USD in the USA. Notably, some companies had already started shifting their operations out of China even before their trade war began a year ago.
However, the ultimate winding wholly and shifting the operations out of China would take a long time. Furthermore, many companies in fields like aerospace, services, and the retail sector may also resist the pressure to leave the market since it is vast and growing (1).
Trump made the US-China trade relation a central theme for his presidency. The US President has also been very critical of the country while also praising its purchase of agriculture products. It includes China’s investment for products like soybeans and corn. These purchases are part of am agreement for trade that reached late last year.