The sale of TikTok is apparently in the last stage but it could face some hurdle as China has updated its export control rules. The move has been taken as Beijing wants to have a final say in the deal. New export control rules focus on technologies that the Chinese government considers sensitive and short video sharing app TikTok could come under it. It was later asserted by a report in China’s official news agency Xinhua. The report quoted a professor as saying that new rules mean that the Chinese internet giant ByteDance might require a license to sell TikTok to an American company. ByteDance is the parent company of popular video app TikTok.
Professor of international trade in Beijing, Cui Fan said that after new rules ByteDance would probably have to get permission from the Chinese government. He went on to say that ByteDance may have to defer talks of TikTok’s sale. The change in rule came close on the heels of ByteDance signaling that it is inching closer to seal the deal for TikTok’s future business in the United States. There were confirmed reports that retail giant Walmart was teaming up with Microsoft in a bid to buy TikTok. Oracle Corporation has also been trying to seal the deal with the popular video-sharing platform. However, none of them have commented on the change in rules by Beijing.
Talks about selling TikTok’s operations in US, Australian, Canadian, and New Zealand began after the Trump administration stated that it was considering banning the Chinese app because of security concerns. The app has already been banned from government-issued mobile devices. President Donald Trump and other White House officials have expressed their apprehensions that TikTok could be a Trojan Horse by the Chinese Communist Party for stealing data. However, the ByteDance and others have denied these allegations. They have termed the treatment by Trump administration as ‘bullying.’ Earlier this week, TikTok said in a filing that it has nearly 100 million active users in the United States.