WeChat Suspends New User Registration in China - Tencent

WeChat Temporarily Halts New User Registrations in China

Tencent’s WeChat announced on Tuesday the temporary suspension of new user registrations within China. This action is being taken to ensure full compliance with applicable “laws and regulations.” It marks the latest instance of a major Chinese company undergoing increased regulatory oversight within the country’s expansive internet market.

Compliance and Security Upgrades

According to a statement released via social media, Tencent is currently “upgrading” its security infrastructure. This upgrade is designed to align with all pertinent legal requirements. During this period of technological refinement, the registration of new personal and official accounts on Weixin – the Chinese name for WeChat – has been paused.

WeChat anticipates that registration services will be reinstated following the completion of the upgrade process. The expected timeframe for this restoration is early August.

Broader Regulatory Context

The specific legislation prompting this announcement remains unclear. However, the move aligns with a wider crackdown on technology companies being implemented by Chinese regulators.

This regulatory pressure has resulted in substantial market capitalization losses for numerous Chinese firms in recent weeks. Significant global investors, including SoftBank, have also been affected by these developments.

A Decade-First Action for WeChat

This represents the first time in over a decade that WeChat, functioning as a comprehensive “super app” in China, has been compelled to take such a measure. Beyond its core messaging functionality, Weixin facilitates online payments and provides access to a diverse array of financial services.

International Scrutiny

It is worth noting that WeChat has faced regulatory challenges outside of China as well. Last year, former U.S. President Donald Trump issued an executive order aiming to prohibit transactions with both TikTok and WeChat within the United States.

More recently, President Joe Biden revoked and subsequently replaced these actions last month.

Concerns Regarding Data and Influence

Analysts suggest that the Chinese government is increasingly focused on the growing influence wielded by technology companies operating within its borders. A key concern is also the protection of its citizens’ personal data.

Recent Actions Against Didi

Earlier in the month, China’s cybersecurity regulator instructed ride-hailing giant Didi to cease onboarding new users. This directive followed shortly after Didi’s $4.4 billion initial public offering on the New York Stock Exchange.

The regulator accused Didi’s application – which has since been removed from app stores in China – of illegally collecting personal data from its user base.