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  • 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]

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