Tencent said the executive order of US President trump banning its wechat instant messaging service could have little impact on its business if it was only applied outside China.In a speech after Tencent announced its financial results, Tencent executives highlighted the difference between wechat services outside China and similar applications used in China. Trump's executive order explicitly refers to the former.
The difference between wechat and wechat is crucial because most of Tencent's revenue comes from within China. If its instant messaging service in China is not disturbed, the impact on Tencent's business may be quite small.
"The executive order focuses on wechat in the U.S., not other businesses in the U.S.," Luo shuohan, Tencent's chief financial officer, said in a conference call with investors, adding that he could not speculate further. "We are in the process of seeking further clarification from both parties in the United States."
Tencent's financial results showed that its revenue had the fastest growth in two years and its profit exceeded analysts' highest expectations. In the three months to June, sales rose 29% to 114.9 billion yuan (US $16.5 billion) and net profit rose to 33.1 billion yuan.