Donald Trump bans Chinese apps including Alipay

Firing a new shot in the trade war, Donald Trump signs an executive order banning transactions with Chinese apps.

US president Donald Trump has signed an executive order banning transactions with eight Chinese apps. Picture: AFP

US President Donald Trump has signed an executive order banning transactions with eight Chinese software applications, including Ant Group’s Alipay, according to reports.

Alipay has joined the likes of TikTok in President Trump‘s firing line, amid escalating US-China tensions and concerns that China-made smartphone applications could pose national security risks.

Other apps banned by the order include CamScanner, QQ Wallet, SHAREit, Tencent QQ, VMate, WeChat Pay, and WPS Office.

In October, the US State Department reportedly submitted a proposal for the White House to add Ant Group to a trade blacklist, amid fears the Chinese government could access sensitive banking data that could include US users.

Ant’s payments app Alipay is used by more than a billion people - mostly in China - and has sensitive data on consumers’ spending habits, borrowing behaviours and payment histories.

The Wall Street Journal reports China is considering a requirement that Ant feed its data into a nationwide credit-reporting system run by the central bank, the People’s Bank of China, the people familiar with the matter say.

Alibaba chairman Jack Ma. Picture: AFP.

Another reported option is that Ant share the sensitive information with a credit-rating company effectively controlled by the central bank.

It comes as Ant Group founder Jack Ma has not been sighted in public for more than two months, following a controversial speech in he criticised the Chinese government’s financial regulatory system.

“The race tomorrow will be a race of innovation, not regulatory capabilities,” Mr Ma said, according to Hong Kong outlet Apple Daily.

Since the speech Mr Ma, who described China’s financial system as outdated and called for reform, has cancelled a TV appearance and avoided social media, prompting speculation about what might happen to China’s biggest business celebrity.

Ant Group was scheduled to list on the Hong Kong Stock Exchange in November, but was suspended by authorities due to “a change in the regulatory environment on financial technology.“ It would have been the world‘s most valuable stock market debut.

Local officials told The Wall Street Journal Chinese President Xi Jinping personally made the decision to halt the IPO following years of tensions between his government and Mr Ma.

BABA American Depositary Receipts (ADRs) dived 5 per cent to $US228.12 in after-hours trading, and were last down 2 per cent at $US236.55.