China tightened before Tiktok sale export rules for technology30. August 2020
China tightened before Tiktok sale export rules for technology
The talks forced by the White House on the sale of the U.S. business of the popular video app Tiktok could be made more difficult by export restrictions imposed by the Chinese government. According to the new rules, among other things, “IT technologies with personalization based on data analysis” and operation using artificial intelligence may only be sold abroad with the government’s permission. Tiktok is owned by the Chinese group Bytedance.
The Chinese Ministry of Commerce published the new rules on Friday. On Saturday, the official Chinese news agency then published an interview with a university professor, who pointed out that Tiktok’s technologies fell under this description.
US President Donald Trump describes Tiktok as a security risk because Chinese authorities could use the app to gain access to data from Americans. At the beginning of August, he prohibited American companies and citizens from doing business with Tiktok, and the ban is to take effect in mid-September. Without the sales Tiktok threatens thereby the out in the USA. Tiktok and Bytedance reject the espionage reproach and went to court in the USA.
Up-to-date the software giant Microsoft negotiates the purchase of the Tiktok business in the USA, Canada, Australia and New Zealand. At the same time, according to media reports, a group of start-up investors together with the software company Oracle is also in the race.
In mid-August, Trump also ordered Bytedance to divest itself of all user data in the United States within three months. After that, Bytedance in the USA would no longer be allowed to own any property that was used for the operation of Tiktok.
The shares of Microsoft and Walmarkt have reached new record levels. The two groups now want to make common cause with a take-over of Tiktok.
Walmart had confirmed to the news agency Bloomberg that it was working together with Microsoft on a takeover of Tiktok. Retailers spoke of a surprising move that would meet the retail group’s desire to become a leading company in the technology sector. According to the group, the move should contribute to growth with its in-house online marketplace and the emerging advertising business.
Meanwhile, US television station CNBC reported that Microsoft is about to purchase Tiktok.