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How China’s New Export Control Rules Could Block TikTok US Sale

China might just be the latest impediment to a potential TikTok sale with the introduction of new rules on AI technology exports. The New York Times reports that TikTok’s parent company, ByteDance, might need a license before it can sell Its operations.

 

The new export control rules focus on technology that the Chinese government considers sensitive. The new rules prohibit selling technology like text analysis, voice recognition, and content suggestions. To do so the companies would have to first obtain a license from the Chinese government.

 

The Wall Street Journal cited a Chinese government official telling state-run Xinhua News Agency that ByteDance should “seriously and cautiously” consider halting talks for a sale of TikTok. It looks like the Beijing-based government is looking to put a stop to TikTok’s American operations.

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The company is having to sell its US operations after the Trump administration issued an executive order banning the company.

 

The 6th August 2020 executive order blocks all transactions with ByteDance demanding its sale to an American company. This order was intended to take effect within 45 days but was later extended to 90 days on 14th August 2020.

 

The order was a result of an investigation of the company by the Committee on Foreign Investment in the US (CFIUS) for any potential security risks.

 

Twitter, Netflix, and Oracle all went into talks with TikTok about a potential sale. Microsoft and Walmart in a joint bid are said to be the front runner regarding the acquisition. Amid the talks, TikTok CEO Kevin Mayer quit the company less than six months into the job on 27th August 2020.

 

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Kolawole Awolope

Passionate about talking, passionate about talking tech.

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