Image Credit: HT Tech
It is becoming increasingly clear that the US finds it disrespectful when a Chinese corporation dominates any pitch. A US or Western corporation should dare to be the best in the world. It doesn’t seem humorous to the US that a Chinese corporation will dominate the world.
Well, as a tech writer, I anticipated this with a popular app like TikTok. TikTok unexpectedly shot to the top of app store charts and daily user growth to millions. You didn’t need a professional to inform you that the US wouldn’t approve of it.
This has already happened to a renowned Chinese corporation. The world’s fastest-growing manufacturer of mobile devices was Huawei. Every year, its growth has doubled. It got to the point where it passed Apple to become the second-largest smartphone brand globally. Of course, the business was also on track to surpass Samsung.
Everything changed suddenly and drastically. Due to several US restrictions, Huawei is currently unable to compete even in its own country of China.
There are over 150 million US individuals using the TikTok platform. The US is attempting to use this large number as leverage to force the sale of TikTok. The Chinese government has chosen to intervene this time, though.
Chinese TikTok stockholders have been urged to sell their shares by the Government administration or risk being banned. In response, the Chinese government stated that it would vehemently reject any forced sale of TikTok.
China’s trade ministry has highlighted that a forced sale of TikTok would gravely undermine foreign investors’ faith in the US.
Image Credit: Financial Times
Before selling Tiktok, the Chinese government may need to give its approval.
The Chinese Commerce Ministry’s spokesperson, Shu Jueting, stated that the government would need to approve any such agreements. It will vehemently reject any attempt to force a sale of the video-sharing site.
The sale or divestiture of TikTok entails technology export, she continued. Additionally, administrative licencing procedures must be carried out in compliance with Chinese laws and rules. She continued, “The Chinese government will decide in accordance with the law.
China did not appear to give a forced sale until 2020 any consideration. But now, the Chinese government has opted to defend its businesses. This will be accomplished by limiting the sale and export of certain Chinese technologies, including TikTok.
Considering Beijing’s prior measures and the most recent response from Shu. The decision to sell TikTok may be made using the government’s veto authority. Following a proposal by Chinese officials, stricter regulations governing the sale of content-based recommendation algorithms to foreign buyers have been put in place.
TikTok was threatened with a ban by the Trump administration if it wasn’t available by 2020. TikTok’s algorithms were added to the list of restricted technologies by the Chinese government. The algorithm behind TikTok, which helps keep users hooked on the app, is one of its greatest strengths. This operates by making content recommendations based on how users interact with the app. thereby displaying only the movies they enjoy and take the time to watch.
According to analysts and legal professionals, China would prefer that TikTok leave the US market than give up its algorithm.