ByteDance applied for license to sell TikTok

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The Chinese technology group ByteDance, owner of TikTok, has applied for a license to export technology in China. TikTok has until next weekend to get approval for a deal on his American Activities, which, according to ByteDance, also requires the green light from Beijing.

ByteDance is still waiting for a response to the application for authorization submitted to a municipal chamber of Commerce in Beijing. In the announcement, the company did not report any negotiations on TikTok in the United States.

The government of President Donald Trump this summer demanded that ByteDance sell TikTok’s American Activities to a company in the US, under penalty of a ban on the app. Last weekend, ByteDance and the US companies Oracle and Walmart concluded an agreement whereby the latter two parties would be given a minority stake in a separate company with TikTok.

After Trump’s threatening language about TikTok, China adapted its export rules in such a way that a sale of the video platform requires permission from the government. It is said to be a particularly sensitive point that ByteDance should reveal the underlying algorithm that makes the app so popular. State media in the Asian country this week indicated that they see no reason for the Chinese government to approve the deal between ByteDance, Oracle and Walmart.

The US has given TikTok until Sunday time to reach an agreement. If there is no result after that deadline, the app will be banned in app stores in the United States.

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Oliver I. Kjeldsen

Oliver I. Kjeldsen has a corporate finance and extensive expertise in company audit. He grants us amazing insights on taxation, international affairs and friendly advice on nearly any topic of interest. His email is [email protected]

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