Trump ordered divestment from TikTok in the United States over security concerns over personal data (portrayal)
Beijing / Shanghai:
China’s new rules on technology exports mean that ByteDance’s sale of TikTok’s U.S. operations could require Beijing’s approval, a Chinese trade expert told state media, a requirement that would complicate the forced and politically charged divestment.
ByteDance has been ordered by President Donald Trump to divest the short video app TikTok – which disputes the order – to the United States over security concerns with the personal data it processes.
Microsoft Corp and Oracle Corp are among the contenders for the assets, which also include TikTok’s operations in Canada, New Zealand and Australia.
However, China on Friday night revised a list of technologies that are banned or restricted from exporting for the first time in 12 years, and Cui Fan, professor of international business at the Beijing University of International Affairs and Economics, said the changes would apply. at TikTok.
“If ByteDance plans to export related technologies, it would have to go through licensing procedures,” Cui said in an interview with Xinhua published on Saturday.
ByteDance said on Sunday that it had taken note of Friday’s revisions to China’s technology export list and would strictly adhere to the rules on related matters, according to a statement posted on its official account on Jinri Toutiao, a news aggregator app that belongs to it.
China’s Commerce Ministry added 23 items – including technologies such as data analytics-based personal information transmission services and artificial intelligence interactive interface technology – to the shortlist.
It can take up to 30 days to obtain preliminary authorization to export the technology.
TikTok’s secret weapon is believed to be its recommendation engine which keeps users glued to their screen. This engine, or algorithm, powers TikTok’s “For You” page, which recommends the next video to watch based on an analysis of your behavior.
Cui noted that ByteDance’s overseas development relied on its domestic technology that provided the core algorithm, and said the company might need to transfer software codes or usage rights to the new owner. of TikTok from China to overseas.
“Therefore, it is recommended that ByteDance seriously study the adjusted catalog and carefully consider whether it is necessary to suspend” negotiations on a sale, he added.
China’s Foreign Ministry has said it opposes executive orders Trump has placed on TikTok and that Beijing will defend the legitimate rights and interests of Chinese companies.
(Except for the title, this story was not edited by GalacticGaming staff and is posted from a syndicated feed.)
