President Donald Trump signed an executive order on Tuesday banning transactions with eight Chinese software applications, including Ant Group’s Alipay, the White House said, increasing tensions with Beijing just over two weeks before President-elect Joe Biden take possession.
The measure, first reported by Reuters, aims to reduce the threat to Americans posed by Chinese software applications, which have large user bases and access to confidential data, a senior government official told Reuters.
The order argues that the United States should take “aggressive action” against developers of Chinese software applications to protect national security.
It assigns the Commerce Department the definition of which transactions will be prohibited under the guideline within 45 days and also targets Tencent’s QQ Wallet and WeChat Pay. The order also names CamScanner, SHAREit, Tencent QQ, VMate and WPS Office.
An American spokeswoman for Tencent and the Chinese embassy in Washington did not immediately comment.
“By accessing personal electronic devices, such as smartphones, tablets and computers, Chinese connected software applications can access and capture a wide range of user information, including confidential personally identifiable information and private information,” says the executive order.
This data collection “would allow China to track the location of federal and contract employees and build personal information files,” the document adds.
The request aims to cement Trump’s harsh legacy with China before the inauguration of Biden, a Democrat on January 20, who said little about how he plans to deal with China’s specific technology threats.
Biden could, however, revoke the order on the first day of his presidency, although his transition team did not immediately respond to a request for comment on the matter.
The order is likely to further heighten tensions between Washington and Beijing, which are fought in a heated dispute over the origins of the coronavirus and the Chinese repression in Hong Kong.
Despite the 45-day deadline set by the request, the Commerce Department plans to act before January 20 to identify prohibited transactions, another US official told Reuters.
The directive reflects Trump’s executive orders signed in August directing Commerce to block some transactions in the U.S. with WeChat and the Chinese-owned video app TikTok.
If those orders had taken effect, they would have effectively banned the use of Chinese apps in the United States and prevented Apple Inc and Alphabet Inc’s app stores from offering them for download to new users.
The restrictions, however, were blocked by the courts mainly on the basis of freedom of expression. The White House is confident that the new restrictions will be subject to judicial scrutiny, as requirements like Alipay’s would have a difficult time filing a First Amendment case, a senior government official told Reuters.
United States Commerce Secretary Wilbur Ross said in a statement that he supports “Trump’s commitment to protecting the privacy and security of Americans from threats made by the Chinese Communist Party.”
Alipay, the Ant Group’s payment app, has been in Washington’s sights for months.
Reuters reported in November that the U.S. Department of State submitted a proposal to add the Ant Group to a business blacklist to dissuade US investors from participating in its lucrative initial public offering. But the Commerce Department, which oversees the blacklist, filed the proposal after Alibaba Group Holding Inc chairman Michael Evans asked Ross to reject the offer.
Ant is the dominant mobile payments company in China, offering loans, payments, insurance and asset management services through mobile applications. It is 33% owned by Alibaba and controlled by Alibaba founder Jack Ma, but is currently not available to American users.
Tuesday’s move is the latest in a series of new restrictions on Chinese companies.
The White House issued an executive order in November banning U.S. investment in alleged Chinese military companies, including China’s top chipmaker, SMIC, and oil giant CNOOC. Last month, the Commerce Department added dozens of Chinese companies, including Chinese drone maker SZ DJI Technology, to a business blacklist.