TikTok ban could hit US tech giants! Apple and Tesla at risk
The Chinese Foreign Ministry stated that a ban on TikTok in the US could negatively affect Apple, Tesla, and other US firms.
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US technology firms could find themselves in a difficult position due to developments in China. The Chinese Foreign Ministry has warned that banning TikTok could negatively impact the US.
A potential TikTok ban has been discussed in the US for some time, and concerns regarding content on the platform are growing. According to experts, this ban could create problems for Apple, Tesla, and other American companies.
On Wednesday, the House of Representatives passed a bill requiring ByteDance to sell TikTok to a non-Chinese entity within six months. Otherwise, it will be banned from app stores in the US.
However, a spokesperson for TikTok claimed the bill was a predetermined outcome, suggesting that TikTok would be effectively banned in the US and that a sale was unlikely. Nevertheless, analysts suggest that if this ban passes, China could retaliate.
The Chinese Foreign Ministry warned on Wednesday that attempts to ban TikTok could backfire.
Gene Munster, managing partner at Deepwater Asset Management, stated that he believes there is a 25 percent chance of a TikTok ban occurring. However, he pointed out that if it does happen, it could negatively affect the operations of some companies, such as Apple and Tesla, in China.
Munster said the Chinese government could retaliate by launching propaganda campaigns that could damage brands. He also stated that they could hinder operations by limiting working hours or blocking permits for new projects.
Dan Ives, managing director and senior equity analyst at Wedbush Securities, stated that the ban could increase tensions between the US and China, calling the situation a "Cold Tech War."
According to a Financial Times report featured in Sözcü, Chinese consumers are increasingly acting with a sense of patriotism, and the government is encouraging the use of Huawei devices among state employees to reduce iPhone usage, citing security concerns.
Munster pointed out that Apple, in particular, could be affected in such a scenario, and said:
"In a world with a TikTok ban, China could expand its anti-iPhone campaign."
China accounts for approximately 18 percent of Apple's total business. In the event of a trade war similar to a TikTok ban, it is estimated that this figure could drop to between 12 and 15 percent.