Technology
China's latest technology export controls could give Beijing a say in the selling of TikTok
China 's latest regulations on technology exports mean that ByteDance's selling of TikTok 's U.S. operations would need the permission of Beijing, a Chinese trade analyst told state media, a condition that would complicate compulsory and politically motivated divestment.
ByteDance has been directed by President Donald Trump to dump the short TikTok video app-which is appealing the order-in the United States in the light of security concerns about the personal details it manages.
Microsoft Corp and Oracle Corp are among the asset claimants, including TikTok 's activities in Canada, New Zealand and Australia.
However, late Friday, China updated the list of innovations barred or forbidden for export for the first time in 12 years, and Cui Fan, Professor of International Trade at the University of International Business and Economics in Beijing, said that the revisions would refer to TikTok.
If ByteDance wants to sell similar technology, licensing protocols should be followed, Cui said in an interview with Xinhua published on Saturday.
The Chinese Ministry of Commerce has introduced 23 products – including innovations such as personal knowledge push services focused on data mining and artificial intelligence digital interface technology – to the restricted list.
Preliminary clearance for the export of technology could take up to 30 days.
TikTok 's hidden tool is claimed to be a suggestion engine that keeps users hooked to their phones. This engine or algorithm is powered by TikTok's "About You" tab, which suggests that you watch the next video based on an interpretation of your behaviour.
Cui observed that ByteDance 's overseas growth had relied on its domestic technology, which supplied the central algorithm, and said that the company would need to pass software codes or use rights to the new owner of TikTok from China to overseas.
It is therefore advised that ByteDance thoroughly review the modified catalog and carefully consider whether it is appropriate to postpone the sale negotiations, he said.
ByteDance did not respond directly to a request for comments on Sunday.
China's foreign ministry has said that it condemns Trump's executive orders to TikTok and that Beijing will protect the legitimate rights and interests of Chinese industry.
