WeChat is not blocked, just like a long list of US internet services not blocked in China - Amazon, NH, booking.com, ebay, uber, airbnb, expedia and many more.
That being said, Huawei and Alipay's expansion into the US has been repeatedly blocked by the US federal government [1]. By citing the same national security concerns, using such logic, Cisco and Microsoft should have long been banned in China - but they are not, both are making good $ in China.
Huawei would like to participate in "forced" partnership and open their servers to the US government in exchange US market access. But still, it's banned by national security. laughable?