TikTok US Sale in Jeopardy After New Chinese Tech Export Rules

By That's, September 1, 2020

0 0

New Chinese government restrictions could hinder ByteDance’s plan to sell TikTok to a US company, following a ban threatened by US President Donald Trump.

Last Friday, the Chinese government announced new restrictions or bans on technology exports, which require companies to seek approval from Beijing. 

The 23 new additions to the list of regulated exports include tech relating to AI interfaces, voice recognition and content recommendation analysis. TikTok’s recommendation algorithm falls within the new regulated export list, which has not been updated since 2008.

The Guardian reported that the new process can take up to 30 days for Beijing approval, while the Trump administration in mid-August gave ByteDance 90 days to sell the company or risk being shutdown in the US.

READ MORE: US Issues Ultimatum on Chinese-Owned App TikTok

Chinese trade expert and professor Cui Fan told Xinhua that ByteDance should “seriously and cautiously consider whether it is necessary to suspend the [TikTok sale negotiations].” The Beijing-based company has said it would “strictly abide” by the new rules.

So far, Microsoft and Oracle have been in talks to buy the business, with the former company partnering up with Walmart to offer a joint bid that will compete with the California-based computer technology company. 

Edward Jones analyst Brian Yarbrough believes that despite the new regulation by Beijing, a deal is in the best interest for both both sides. 

“It has been pretty clear that if this deal doesn’t get done, then they’re going to ban it in the US and that’s terrible for all parties,” Yarbrough said, as cited by Reuters.

[Cover image via @Antonbe/Pixabay]

more news

Airbnb to Close Business in China

All 150,000 Chinese mainland listings will be taken down by this summer.

China Easing COVID Entry Requirements from Some Countries

Notices from Chinese embassies in some countries indicate changes to requirements for inbound travellers.

China Eastern Flight MU5735 – Everything We Know So Far

Tragedy struck over Guangxi Zhuang Autonomous Region yesterday.

Soccer News – China Will NOT Host AFC Asian Cup 2023

The new host nation has not yet been decided.

China Hotel News Roundup: Spring 2022

What's been going on in the wonderful world of hospitality!

China Restricts Citizens from ‘Non-Essential’ Foreign Travel

China promises to double down on the pursuit of 'zero-COVID' and aims to further restrict international travel and curb the small number of imported cases coming in.

Meet the Brains Behind China Beauty Brand Incubator GENLAB

GENLAB invests in and incubates emerging beauty and consumer brands.

China Approves Clinical Trial of Omicron Vaccine

A COVID-19 vaccine to fight off the omicron variant was approved for clinical trials.

0 User Comments

In Case You Missed It…

We're on WeChat!

Scan our QR Code at right or follow us at thatsonline for events, guides, giveaways and much more!

7 Days in China With thatsmags.com

Weekly updates to your email inbox every Wednesday

Subscribe

Download previous issues

Never miss an issue of That's Magazines!

Visit the archives