TikTok: China does not want to sell

The trade dispute between the USA and China seems to be a never-ending scenario. At present, it is mainly the haggling over the sale of the successful TikTok app that symbolizes the dispute. Only recently, the sale to Microsoft, Oracle or Walmart seemed to be already in sack and bag. But now it turns out that the Chinese government now prefers to withdraw from the US market rather than sell to a US company.

Chinese government reveals own view

So far, we have not heard nothing of the Chinese government’s opinion when selling TikTok. Rather, it was always the app developer Bytedance who revealed his view of the sale. But now it has become public how China stands to the sales intentions. The Far Eastern government is probably against a takeover of the US business by a US company. But the only alternative to the sale is the termination of the US business of TikTok. The reason for this is the appointment by US President Donald Trump of the app on the “threat to the national security of the country”. Thus Bytedance finds itself in a dilemma of economic and political nature. On the one hand they would miss out on a very big deal if the app were sold. On the other hand a sale could possibly be interpreted as a sign of weakness.

Deadline expires soon

According to the latest information, the deadline for the sale expires on September 15. US President Trump recently rejected an extension of this deadline once again. If TikTok cannot initiate a sale by that date, a ban in the USA is inevitable. Chinese members of government have made it clear, however, that they are against a “forced sale” of the US business of the successful app. The consequence of a sale would be a clear sign of weakness on the part of developer Bytedance, but also of the Chinese government. As a result, the news agency Reuters turned to Bytedance to find out how great the influence of the Chinese government really is. The developer then made it clear that China was not exerting any pressure. Thus, the inventors of TikTok are free to sell or withdraw completely from US business.

China sees national security as a pretext

The Chinese government is anything but happy about TikTok’s problems in the USA. Especially the actions of US President Trump are causing bad mood in the Far East. Zhao Lijian, Deputy Director of the Information Department of the Chinese Foreign Ministry, announced at a press conference that the United States is using national security as a pretext. In the course of this, Lijian called on America to refrain from further repression of foreign companies. Developer Bytedance, however, has followed his words with deeds. A lawsuit was filed against President Trump as well as the Department of Commerce and the Secretary of Commerce himself. The goal is to have Trump’s decree declared invalid. In addition to Bytedance itself, a TikTok employee from the USA has now also filed a lawsuit. He fears that he will not receive a salary in the future.

China makes sales more difficult

China has already taken appropriate measures to make sales more difficult. For example, the Chinese government has made it more difficult for domestic companies to sell to foreign companies. Here it is clear that China is doing everything possible to ensure that a sale of TikToks’ US businesses does not take place. We are curious how long the hick hack with the USA, TikTok and China will continue. One thing is certain: Bytedance is standing between the chairs with his app. On the one hand, a sale of the US businesses would not make the economic consequences too serious. On the other hand, the sale could ultimately have consequences from the Chinese side.

Simon Lüthje

I am co-founder of this blog and am very interested in everything that has to do with technology, but I also like to play games. I was born in Hamburg, but now I live in Bad Segeberg.

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