China makesTiktok Sale To USA difficult!
Without a sale, the popular Tiktok app is threatened with extinction in the USA. Microsoft is already negotiating with the Chinese company Bytedance. However, a new directive from China is likely to complicate the agreement.
The talks made by the White House regarding the Tiktok Sale To USA, could be hampered by export restrictions imposed by the Chinese government. According to the new rules, among other things:
“IT technologies with personalization based on data analysis” and operation using artificial intelligence, may only be sold abroad with a permit from the government.”
Tiktok belongs to the Chinese company Bytedance.
The Chinese Ministry of Commerce published the new rules on Friday and they are sure to have a big impact on the Tiktok Sale To USA. 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 pass 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. At the beginning of August, he banned US companies and citizens from doing business with Tiktok!
Without the Tiktok Sale To USA, Tiktok could come 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 reports, a group of startup investors is 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 for the operation of Tiktok.
What will happen to the Tiktok Sale To USA?