The controversial push to require Chinese tech unicorn ByteDance to divest part or all of its smash-hit TikTok social networks service to a US-based company could be in doubt after a report today indicated that China’s federal government might oppose the deal. According to reporting by Reuters, the Chinese federal government may choose TikTok to just shutter its U.S. operations rather of permitting it to be offered to an American business.
The potential divestment of TikTok is not a regular business transaction. Rather, the deal is being required by the U.S. government, as President Donald Trump directs foreign and financial policymaking by means of executive fiat. Leaning on his own legendary company acumen, the American premier has likewise required that his government get a part of any final list price. It is unclear if that principle is legal.
As the U.S. and China spar around the world for both economic and political supremacy, the offer is a flashpoint between the countries with a muddle of business stuck in the middle. ByteDance is in the mix, in addition to Microsoft, Walmart and other business to a lower degree, like Oracle. The Trump administration has actually set a mid-September timeline for a deal being struck, though as the month burns away it is not clear if that timeline might be satisfied.
The United States is not alone in taking actions to suppress Chinese influence inside its borders, as the TikTok sale comes after India banned the app, together with dozens of other China-based applications.
The deal is likewise under pressure from an altering regulative environment in China, with the nation’s autocratic leadership altering its export guidelines to possibly consist of aspects of TikTok that might restrict a deal, and maybe scuttle its sale.
For ByteDance, the situation is a headache. For lead-suitor Microsoft, the deal is a shotgun marital relationship that it might not be totally enthused about. For the Trump administration, it’s an attempt at a power play. And for China’s significantly authoritarian government, the offer could feel like submission. So, if the deal does handle to come together it will be more surprise than possibility.
Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.