The Chinese government breaks its silence about the possible acquisition of American investors to TikTok, issuing revised rules concerning selling technologies to foreign companies.
It was a rough 2020 for TikTok and its parent company ByteDance, as struggles have come along their way. The app hit 2 billion downloads, but it is the same reason why it became the target of political and business propaganda.
TikTok was banned in several countries and is followed by an on-going dispute with the U.S government. Trump administration issued an executive order on August 6 to ban trading between the Chinese company and American business owners for 45 days. Then, later on, Trump issued another E.O giving ByteDance a 90-day deadline to sell its U.S. businesses to interested buyers.
Microsoft is the leading company that shows interest in acquiring TikTok. In fact, it was already reported that the tech giant is nearly closing the deal with the Chinese company.
Other companies are also eager to acquire the famous short-video app, such as Oracle and Netflix. But, Microsoft even teamed up with Walmart to fully dominate the acquisition of the app.
However, the on-going deal will be deeply affected by the newly published rules by the Beijing administration. According to the Ministry of Commerce and Ministry of Science and Technology of China, the changes made in the constitution were meant to “protect national security” and “formalize the management of technology export.”
The notices did not mention specific companies, apps, or even names like TikTok or BytDance. However, experts cited that ByteDance will have no choice but to seek permission to its government before it could continue the transaction with the U.S. investors.
On Sunday, ByteDance acknowledges the rules set by its administration and said that it would “strictly comply” with them. The company’s response would mean that it is another long journey before it could decide its future. Until then, there is no assurance if the well-known app would stay in the United States or banished like what happened to Huawei.