Updated China Law Could Further Complicate TikTok’s US Sale

Tiktok’s chaotic US sales negotiations may be more complex. In the latest 11-hour diversion, China has updated its list of technologies (via Nikkei) that are subject to export restrictions to add “data-based personal information services recommendations”.

The list, which was last refreshed more than a decade ago in 2008, also includes technologies that are considered sensitive such as voice recognition and computer chips. Chinese companies that want to sell any of these technologies to a foreign bidder must obtain a license from the government.

While the amendment does not directly confirm that it would throw a wrench in an attempt to sell an American owner to Tiktok before it was banned, its timeline and description presumably suggest it was rolled out for that exact purpose can go.

In addition, on August 29, a state-backed Chinese news agency published comments from Cui Fan, a professor at the China University of International Business and Economics and a government business adviser, based on translations of the Chinese text : “If ByteDance plans to export related technologies, it must go through licensing processes.”

In a statement, Bydens General Counsel Erich Anderson told that the company was “studying the new rules” and that it would “comply with applicable laws.” “As with any cross-border transaction, we will follow applicable laws, which include the US and China in this case,” he said.

We’ve reached out to Microsoft and Oracle, two of the frontrunners reported for a Tiktok acquisition, and we’ll update the story when we hear back.

TikTok’s recommendation engine is its cornerstone and one of the key drivers behind the viral rise of video apps worldwide. The algorithm exploits data stacks and correctly suggests viewing habits to you even if you do not directly follow any constructor.

It is unclear whether this updated law will affect Tiktok if it does at all. The deal, whenever in its final stages, may simply end under heavy scrutiny from Chinese authorities who can primarily study both its civilian and military implications. Does it have a political agenda and will be prevented from going to see the deliberate takeover.

Earlier this month, an editorial, state-backed paper, China Daily, called the Trump administration’s executive order an act of “bullying”. China has “plenty of ways to respond if the administration to sabotage and grab its planned”.

On August 24, Tiktok filed a lawsuit against the executive order stating that the ban has the potential to snatch away the “rights” of employees and creators “without evidence” to justify such extreme action for. Three days later, the company’s CEO Kevin Mayer resigned.

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