New China Export Rule Could Jeopardize TikTok U.S. Sale

TOPLINE

The Chinese government has added artificial intelligence technologies including ‘personalized content recommendation’ tools to its export control list, a move that could potentially jeopardize the pending sale of TikTok’s U.S. operations, Nikkei Asian Review reported first.

KEY FACTS

Key Background

Oracle is competing with a joint bid from Microsoft and Walmart to acquire TikTok’s U.S. operations after the White House threatened to ban the app for allegedly sharing sensitive user data with Chinese authorities. Earlier this week, TikTok CEO Kevin Mayer announced his exit from the company, just months after taking charge. According to a report by the Financial Times, Mayer had not anticipated the extent to which TikTok would become involved in tensions between China and the U.S. when he took over in June. A TikTok spokesperson told CNN Business that they respected his decision since the “political dynamics of the last few months” had significantly changed the scope of Mayer’s role. On Monday, TikTok had filed a legal challenge against the president’s executive order banning U.S. transactions with the video-sharing platform and its owner ByteDance. While the official communication from the Chinese government on Trump’s threat to ban TikTok has been limited, China’s state-controlled media has been vocal about its displeasure on the issue. Earlier this month, a strongly-worded editorial on China Daily noted “China will by no means accept the ‘theft’ of a Chinese technology company, and it has plenty of ways to respond if the administration carries out its planned smash and grab.”

Further Reading

China’s new AI export curbs threaten TikTok’s US sale (Nikkei Asian Review)

Details Emerge Over TikTok Sale, As Oracle Competes With Microsoft, Walmart Joint Bid (Forbes)