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In a move that could thwart bidders or atleast significantly slow down the process to buy out the Chinese app TikTok, the government of China updated its export control rules that covers a range of “dual use” technologies deemed sensitive by the government, which includes the ByteDance-owned app among others.

According to Xinhua News Agency, the new rule could mean that TikTok’s parent company ByteDance would have to procure a license to sell its technology to an American bidder. Just a couple of days, reports emerged that TikTok’s US business could be acquired by Oracle or Microsoft as early as end August. This development followed reports of TikTok being given 90 days to handover its US business to any American entity after President Donald Trump signed an executive order banning the app on grounds of national security.

The term “dual-use” technology could imply civilian and military use. In addition to TikTok, China has reportedly named 50 other apps that are considered too sensitive for sale outside of India.

With this development, companies like Microsoft and Oracle’s plans to buy TikTok could significantly slow down the takeover, and further the deepening rift between USA and China. It could also “call President Trump’s bluff” compelling the US government to go through with its plan to ban the app and upset its fans and influencers. TikTok is undoubtedly one of the most successful Chinese apps ever, with scores of users in markets worldover. According to the New York Times, this move could force the Trump administration to take more measures to block other Chinese apps like Alibaba and Baidu from doing business in the USA.

This isn’t the first time China has resorted to last minute bureaucratic controls to thwart business deals, added NYT, citing the $44bn deal by Qualcomm to buy Dutch chipmaker NXP Semiconductors after regulators failed to approve or reject the deal. 

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