Daily Management Review

China Prefers Closure Of TikTok In US Rather Than A Forced Sale: Reuters


China Prefers Closure Of TikTok In US Rather Than A Forced Sale: Reuters
Chinese authorities and politicians are willing to see the short video sharing app TikTok to shut down in the United States rather than se the app’s US operations being sold to an American company by the apps Chinese owner ByteDance, reported Reuters quoting sources with knowledge of the matter.
Negotiations for the sale of TikTok is being held by ByteDance with a number of American companies including Microsoft and Oracle since a threat issued by the US president Donald Trump last month of banning the services of TikTok if the app as not sold to an American company.
ByteDance has been given till mid September to finalize a deal by Trump.
But if ByteDance does sell off TikTok to n American company because of the threat of banning by the Trump administration, it will be viewed as a forced sale by the Chinese authorities and will make China appear weak in the face of pressure from the US, which is the belief of Beijing, claimed the news agency Reuters quoting sources. 
There have been no suggestions from the Chinese government to ByteDance to that it should shut down TikTok in the United States or in any other markets, ByteDance reportedly said in a statement to Reuters.
Revisions made to a technology exports list on August 28 by China will be used by Beijing to delay any deal reached by ByteDance for the sale of TikTok if it came to such an eventuality. 
There were no comments available on the issue from China’s State Council Information Office and its foreign and commerce ministries.
The United States was abusing the concept of national security said Chinese foreign ministry spokesman Zhao Lijian at a regular press briefing on Friday when asked about Trump and TikTok. The spokesperson urged the US to stop oppressing foreign companies.
Discussions on four ways to structure an acquisition from ByteDance is currently ongoing between ByuteDnce and American companies interested to purchase TikTok, claimed other reports. 
If one of these structures is followed, a sale of TikTok by ByteDnce could still be possible without the companies needing to get approval from China’s commerce ministry if the sale happens without the inclusion of the key algorithms of TikTok.
A clash between the two largest economies of the world - the US and China, has put ByteDance and its founder Zhang Yiming in its cross hairs.
Two executive orders were issued by Trump last month which mandated selling off of TikTok’s assets by ByteDance or face the consequence of getting banned in the country. The short video sharing app has gained popularity in the US particularly among teenagers.