The Limited Times

Now you can see non-English news...

Before TikTok sale: Beijing tightens export rules for technology

2020-08-31T07:25:26.703Z


The forced sale of TikTok's US subsidiary arouses defensive reflexes from the Chinese government. Significantly stricter rules on technology transfer make regular sales unlikely.


Icon: enlarge

TikTok video app: Beijing orders permission conditional

Photo: MANJUNATH KIRAN / AFP

The talks forced by the White House to sell the US business of the popular video app TikTok could be hampered by export restrictions imposed by the Chinese government. According to new rules, among other things, "IT technologies with personalization based on data analysis" and operation with the help of artificial intelligence may only be sold abroad with government permission. TikTok is owned by the Chinese company Bytedance.

The Chinese Ministry of Commerce published the new rules on Friday. On Saturday, the official Chinese news agency published an interview with a university professor who pointed out that the technologies at TikTok fell under this description. In order for the international business to continue functioning, algorithms and software from Bytedance would have to be transferred to a new owner. The list of products affected by export restrictions has been expanded to include 23 items.

US President Donald Trump describes TikTok as a security risk because Chinese authorities could gain access to American data via the app. In early August, he banned US companies and citizens from doing business with TikTok - the ban is due to take effect in mid-September. Without a sale, TikTok threatens to end in the USA. TikTok and Bytedance deny the allegation and went to court in the US.

The software giant Microsoft is currently negotiating the purchase of the TikTok business in the USA, Canada, Australia and New Zealand. The supermarket giant Walmart also wants to be on board. At the same time, according to media reports, a group of start-up investors is also in the running together with the software company Oracle.

Trump also ordered in mid-August that Bytedance had to disconnect from all data from users in the United States within three months. Bytedance is also no longer allowed to own any property in the USA that is used to operate TikTok.

Icon: The mirror

mik / dpa

Source: spiegel

All business articles on 2020-08-31

You may like

News/Politics 2024-02-29T11:14:47.110Z
Business 2024-03-14T11:45:50.561Z

Trends 24h

Latest

© Communities 2019 - Privacy

The information on this site is from external sources that are not under our control.
The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.