China limits technology exports and jeopardises TikTok sale
The first change since 2008 in China's technology export limitation or restriction lists could mean that ByteDance, the developer of the short video social network TikTok, cannot sell its business in the United States - as Washington demands - without Beijing's approval.
This Friday, the Ministries of Trade and Science and Technology made the first change to the list in twelve years, to include forms of artificial intelligence such as voice recognition or data analysis and content recommendations.
The technologies on this list cannot be exported to other countries unless Trade gives its approval - it has 30 days to decide - and the Government must review and approve foreign sales agreements within 15 days.
According to an expert quoted by the Chinese state agency Xinhua this weekend, "some technologies" used by ByteDance "may have been covered" after the catalogue was updated, specifically alluding to the two fields mentioned above.
Cui Fan, professor at the Beijing University of International Business and Economics, assured Xinhua that for TikTok to continue to operate "smoothly" under its possible new owner, "it is very likely that a transfer of software code (source) or usage rights from China will be required". "Technical services may also need to be provided from China," the expert notes.
Cui suggested that Bytedance "study carefully" the new export list and "consider seriously and carefully whether it is necessary to suspend negotiations on the relevant transactions", referring to the process by which he is trying to sell his business in North America, Australia and New Zealand to a US company.
In recent weeks the US media have pointed to a possible partnership between Microsoft and Walmart to undertake the operation, and there has also been speculation with other possible stakeholders such as Twitter or Oracle.
TikTok is another chapter in the escalation of tension between China and the United States: on 6 August, US President Donald Trump banned any transaction or business with ByteDance from 45 days from that date, considering TikTok a threat to national security.
Last Monday, the social network filed a lawsuit against the government led by Trump, considering that the "national security concerns" on which its veto is based are not "genuine".
