Seemingly, China will give a tough time to TikTok as the Short video sharing app is striving to deal with an American Company and comply with President Trump’s warning to sell TikTok to a US-based firm. Reportedly China has passed a new rule that could give Veto Power to the Chinese government to control any deal.
China Brings New Rules: A Probable Glitch In The TikTok Sale
The Chinese government recently published notices in which the rules for selling certain technologies to foreign buyers have been revised. The new list contains all the technologies like text recognition, speech, and data, which is apparently all used by TikTok, which is currently in the news for cracking a deal with a US company. Microsft TikTok deal is quite close as per the report.
Rules Revised After a Long Time
The rules have been revised a long time since 2008, as announced by the Ministry of Science and Technology along with the Ministry of Commerce in China. The Chinese government said that the rules are created to administer and standardize technology export management and safeguard Chinese security.
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Rules May Require TikTok To Seek Chinese Approval
As per the news, the notices have not been formally directed to TikTok or ByteDance in particular; however, the people familiar with the matter cited that this change in rule would compel ByteDance to seek Approval from Chinese Authorities before selling the application to any foreign-owned firm.
TikTok Facing Troubles
TikTok is currently facing a lot of turbulence as its struggling against bans in several countries, facing ultimatum for a sellout to US company and the CEO resigning last week. Kevin Mayer left after joining the company just four months ago, and he said that “Sharply Changed Political Environment” is the reason for his exit. US President Trump has warned the company to sell to an American firm or face ban in the country.
Seemingly A Deliberate Move From Dragon
As per the legal experts, Chinese Law change is a deliberate attempt to create some control over the entire situation. Furthermore, the prospective bidders would re0think their proposals for buying TikTok. Right now, Walmart, Microsoft, and TikTok are the most probable buyers of the popular application.