China can likely block the sale of TikTok to the US
China can likely block the sale of TikTok to the United States. According to the New York Times, China’s move will include TikTok’s current personalization engine. The list includes in particular ” a technology based on data analysis for personalized information recommendation services “. A personalization algorithm is an essential tool for today’s social media networks. It directs users to content they would probably like, but may not necessarily follow yet.
If affected by this decision, ByteDance, the parent company of TikTok, may need the authorization to sell TikTok to a US company. In such a scenario, China is mimicking the ongoing decision demanded by the US government today. Currently, US companies also need a license to export US products to Chinese blacklisted companies like Huawei.
Notably, TikTok appears to be alone in a battle against the Trump administration. Recently, Trump signed an executive order requiring TikTok to leave the country or find an American buyer. Since then, the Chinese government has yet to play its cards. With the latest expanded ruling, China now has a say in TikTok’s end buyer. Microsoft and Oracle remain the two biggest potential contenders for the video-sharing platform.
Despite the lack of action, China has already expressed contempt for US interference in the affairs of Chinese companies. Moreover, recently the country threatened to go after Nokia and Ericsson if the United States did not stop harassing Huawei around the world.