China: perceived impact of WeChat ban to American companies 2020

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)	88%
Loss of competitiveness	56.3%
Revenue loss	41.5%
No impact	4.9%

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Release date

August 2020

More information

Region

China, United States

Survey time period

24 to 25 August, 2020

Number of respondents

142 respondents

Special properties

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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