China may prevent TikTok from being sold in the US due to new export rules

China has introduced new technology export rules for the first time in 12 years, which could potentially prevent TikTok from being sold in the United States. To make a ByteDance transaction, you will need the permission of certain government departments. Some citizens of China have already supported this initiative.Last Friday, the Ministry of Commerce and the Ministry of Science and Technology of the People’s Republic of China for the first time since 2008 updated the list of technologies whose export will be banned or restricted.

Two new items may directly affect the activities of ByteDance, which owns the TikTok service.

Some artificial intelligence technologies, including voice recognition, as well as data analytics and content recommendation systems, fall under the new rules. All these technologies are used in one way or another in the popular video service.

Here’s what any company that wants to export technology from the new list needs to do:

• get a preliminary permission from the Ministry of Commerce, which has 30 days to make a decision;the company must agree on the terms of the transaction itself with the government and obtain an export license;
• the authorities will have up to 15 days to make a decision on this issue.
• The new orders of the PRC do not directly mention TikTok, but some experts are sure that this will somehow affect the video service.

Some advise the company to “seriously consider suspending negotiations on the sale of TikTok.”

Erich Andersen, General Counsel of ByteDance, said that the company is already studying the new rules: “As in any cross—border transaction, we will follow the current legislation – in this case, American and Chinese.”

At the same time, some patriotic users of the popular Chinese website Zhihu came out in support of the government. They believe that the state helps ByteDance to “preserve dignity”. “We can lose, we can die, but we can’t bow down,” one user wrote.

Earlier, the Trump administration set a deadline for the TikTok situation on September 15. If by this time ByteDance does not sell the rights to manage the video service to an American company (Microsoft is called among potential buyers), the popular application will be blocked. However, new Chinese export rules may prevent a deal from being concluded on time.

“By creating such an export list, the Chinese government will potentially be able to interfere in the affairs of Chinese companies and provide them with protection,” said Shaun Rein, director of China Market Research Group. — But it also puts a lot of pressure on companies because they don’t know how to act at the moment. They are between two superpowers that are fighting for dominance in the next 10-20 years.”

Rain also believes that TikTok may eventually cease operations in the United States if ByteDance does not receive the approval of the Chinese authorities.

Also on the topic:

• Microsoft announced its intention to buy TikTok amid threats to ban the application in the United StatesFrom September, Chinese gamers will have to play under real names
• Apple has started cleaning up the Chinese App Store.
• Only for August 1, 26 thousand games were deletedIs there any news?