TikTok: New Chinese rules could complicate a sale of its US business
CNNHong Kong/Atlanta CNN Business — China appears to have complicated efforts to sell TikTok to an American company by introducing new rules that could allow Beijing to veto any potential deal. China’s Ministry of Commerce and Ministry of Science and Technology said the changes were meant to “formalize the management of technology export” and “protect national security.” The notices did not name TikTok or its Beijing-based owner ByteDance, but experts have pointed out that the rule change would likelyrequire ByteDance to obtain government permission before it could sell TikTok to a foreign company. The latest move could be posturing by Beijing, said Elena Chachko, lecturer on law at Harvard Law School, who added that the government may be engaging in “a tit-for-tat dynamic.” But China is also “making clear that the United States doesn’t have full control over the future of US TikTok operations and a potential TikTok sale,” she added. “While we’re talking about an app that’s for cat videos and dancing, there is some interesting underlying technology that any country would want to protect,” he said, such as the advanced artificial intelligence algorithmsthat help make TikTok’s feed so addictive. If the United States succeeds in forcing TikTok to sell key tech to an American company, “China would be concerned that, as its technology companies continue to ascend, more Chinese companies … might be targeted by the United States in a similar way,” she said.