China's new rules over tech exports complicate TikTok selling
- Beijing's move has called Trump's bluff on TikTok and opened up the possibility that the app could be sold to an American buyer to avoid a ban on its business in the United States
(Karachi) In a new development, Government of China has revised rules that govern the sale of certain kinds of technology to foreign buyers. The updated list includes data processing, speech and text recognition, however it did not name TikTok or its Beijing-based owner ByteDance.
An article published in Bloomberg stated that after the change in rules, ByteDance will be required to obtain government permission before it could sell TikTok to a foreign company.
It is for the the first time such rules have been revised by Chinese officials after 2008. As per officials of China's Ministry of Commerce and Ministry of Science and Technology, these changes are meant to protect national security and legalize the management of technology export.
Meanwhile, ByteDance officials said that they are aware of the new rules and the company will strictly follow and comply with them which could complicate TikTok’s U.S. operations sale.
TikTok's sale process began after US President Donald Trump issued an executive order threatening to ban the app unless ByteDance sells its US operations in the coming weeks.
Trump and other politicians said the application poses a threat to national security. TikTok, though, has denied the allegation and sued the Trump administration over the order. China's initiative will lead Trump to grapple with the real possibility that TikTok won't find a buyer, and he will have to decide whether to remove one of the country's most popular products from the app store. But playing off could backfire.
There is another possibility that if US president decides to ban the app then he could face backlash from TikTok fans.
With the new change in rules, China has opened up the possibility that TikTok could be sold to an American buyer to avoid a ban on its business in the United States.
The app already has a handful of prospective buyers, including Microsoft and Walmart which said they are participating in negotiations over a potential deal. The tech firm Oracle (ORCL) is reportedly interested as well.
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