CHINA THROWS MONKEY WRENCH ON US BID TO TAKE OVER TIK TOK
China has trumped US President Donald Trump’s attempt to strong-arm Bytedance, the parent of popular app Tik Tok, into selling its US operations to American companies by simply imposing restrictions on the sale of tech companies and ordering that they secure licenses from Beijing before any foreign takeover is consummated.
Writing for Business Insider early on September 1, 2020, Samantha Lee said the restrictions were imposed on Friday, August 28, just days before TikTok was expected to announce a potential sale of its US operations. TikTok’s CEO in the US also quit, perhaps aware that Beijing has an ace up its sleeves in blunting Trump’s pressure on the compulsory Tik Tok sale and making him look foolish in meddling in private corporate affairs.
The new rules would require TikTok to obtain a license from the Chinese government before selling tech to a US company, potentially giving China veto power over the sale and mocking Trump’s demand that Chinese tech companies leave the US.
Meanwhile, the Trump administration has said TikTok will be banned if it isn't sold to a US company by mid-September but this declaration has been ridiculed by 100 million American users. TikTok, which is owned by China-based ByteDance, has scrambled to rapidly reach a deal to sell its US operations after President Donald Trump threatened to ban the app by mid-September if it's still owned by a Chinese company. The app is reportedly weighing a joint offer from Microsoft and Walmart, as well as an offer from Oracle.