Skip to main content
https://www.highperformancecpmgate.com/rgeesizw1?key=a9d7b2ab045c91688419e8e18a006621

TikTok parent ByteDance says it will ‘strictly follow’ China export controls

While Beijing has repeatedly spoken out against Washington’s pressure on Huawei, it has remained relatively quiet amid TikTok’s recent struggles in the U.S. As the red-hot video app approaches a final sale in the U.S., however, the Chinese authority moved unexpectedly to make the deal more complicated to go through.

On late Friday, China’s Ministry of Commerce updated its export control categories to cover artificial intelligence technologies. AI is the anchor of ByteDance products including TikTok, which has thrived on customized content surfaced by machines. The next day, China’s official Xinhua news agency quoted scholar Cui Fan as saying the updated rules could apply to ByteDance. He advised companies with ongoing deals to “halt negotiations and transactions so as to conduct the relevant procedures.”

On late Sunday, TikTok’s Chinese parent ByteDance issued a statement saying it will “strictly follow” the new technology export rules and handle its “related export businesses.”

Though the new rule is not explicitly targeted at the TikTok deal, its timing is curious, just weeks before ByteDance is due to divest from its largest overseas market. ByteDance could now face hurdles as it advances to sell TikTok, for the regulation restricts the export of personalized recommendation and AI-powered interface technologies, according to Cui, a professor at China’s University of International Business and Economics.

A TikTok sale is already complicated on the technical level even without China’s trade restrictions. As The Information pointed out, ByteDance’s engineers and developers at its headquarters Beijing provide all the software code deployed in its family of apps including TikTok. It’s a strategy known as the “central platform” in the Chinese tech sector, one that also undergirds many businesses of Alibaba and Tencent for its purported advantage of increasing productivity and minimizing redundant resources. As such, breaking TikTok off from its Chinese parent would almost certainly disrupt the app’s operations in the short run.

Many Chinese internet users have chastised ByteDance chief Zhang Yiming for caving in to U.S. pressure, which ordered the TikTok sale over alleged national security threats. Some go as far as labeling the tech boss of the world’s most valuable startup a “traitor“. They compare Zhang to the Huawei boss Ren Zhengfei, whose responses to American sanctions have been thought of as much more aggressive.

It remains to be seen whether Beijing will further step in TikTok’s negotiations with the U.S. Industry observers have noted that the case is distinct from that of Huawei, whose 5G technology is a focal point of China’s race with the U.S., and who directly and indirectly has created many manufacturing jobs in China. Albeit being unprecedented in its penetration into the Western internet, ByteDance develops software that is considered more replaceable and relies on a narrower range of elitist talents.

A damaged TikTok app may cause complaints from marketers who live off the app, but it probably won’t set off the same level of corporate resistance as seen with Trump’s proposed WeChat ban, which reportedly had giants including Apple, Walmart and Disney move to discuss the issue with the White House.

 

Comments

Popular posts from this blog

Uber co-founder Garrett Camp steps back from board director role

Uber co-founder Garrett Camp is relinquishing his role as a board director and switching to board observer — where he says he’ll focus on product strategy for the ride hailing giant. Camp made the announcement in a short Medium post in which he writes of his decade at Uber: “I’ve learned a lot, and realized that I’m most helpful when focused on product strategy & design, and this is where I’d like to focus going forward.” “I will continue to work with Dara [Khosrowshahi, Uber CEO] and the product and technology leadership teams to brainstorm new ideas, iterate on plans and designs, and continue to innovate at scale,” he adds. “We have a strong and diverse team in place, and I’m confident everyone will navigate well during these turbulent times.” The Canadian billionaire entrepreneur signs off by saying he’s looking forward to helping Uber “brainstorm the next big idea”. Camp hasn’t been short of ideas over his career in tech. He’s the co-founder of the web 2.0 recommendatio...

Leading VCs discuss how COVID-19 has impacted the world of digital health

In December 2019, Extra Crunch spoke to a group of investors leading the charge in health tech to discuss where they saw the most opportunity in the space leading into 2020 . At the time, respondents highlighted startups in digital therapeutics, telehealth and mental health that were improving medical practitioner efficiency or streamlining the distribution of care, amongst a variety of other digital health markets that were garnering the most attention. Where top VCs are investing in digital health In the months since, the COVID-19 crisis has debilitated national healthcare systems and the global economy. Weaknesses in healthcare systems have become clearer than ever, while startups and capital providers have struggled to operate while wide swaths of the market effectively shut down. Given significant volatility and the rapid changes seen in the worlds of healthcare, venture and startups broadly, we wanted to understand which inefficiencies might have been brought to light, w...

News-reading app Flipboard expands local coverage, including coronavirus updates, to 12 more U.S. metros

Earlier this year, personalized news aggregation app Flipboard expanded into local news . The feature brought local news, sports, real estate, weather, transportation news and more to 23 cities across the U.S. Today, Flipboard is bringing local news to 12 more U.S. metros and is adding critical coronavirus local coverage to all of the 35 supported locales. The 12 new metros include the following:  Baltimore, Charlotte, Cleveland, Detroit, Indianapolis, Nashville, Pittsburgh, Orlando, Raleigh, Salt Lake City, St. Louis, and Tampa Bay. They join the 23 cities that were already supported:  Atlanta, Austin, Boston, Chicago, Dallas, Denver, Houston, Las Vegas, Los Angeles, Miami, Minneapolis-St. Paul, New Orleans, New York City, Philadelphia, Phoenix, Portland, Sacramento, San Diego, San Francisco Bay Area, Seattle, Toronto, Vancouver and Washington, D.C. To offer local news in its app, Flipboard works with area partners, big and small, like The Plain Dealer’s Cleveland.com , ...