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.
Abaigael Schlomski is an accomplished economist and financial journalist with over a decade of experience in the industry. He is a regular contributor to EconomicInform, where he provides in-depth analysis and expert commentary on the latest economic trends and events. With a keen understanding of the financial markets and a talent for breaking down complex economic concepts for a general audience, Maurice is a trusted and respected voice in the field.