The deal that the United States based companies Oracle Corp and Walmart Inc have claimed to have struck with the Chinese company ByteDance about the ownership of its Chinese short video sharing app TikTok is not likely to be approved by Chinese authorities because it is considered by Beijing to be “unfair”, claimed the state owned Chinese newspaper Global Times in an editorial.
The two American companies had claimed during the weekend that in order to satisfy the administration of the US President Donald Trump which had planned to ban TikTok in the United States on security grounds, they had struck a deal with ByteDance under which they will take up minority stakes into a new mainly US-owned company, TikTok Global. The two companies had said that the board of the new company would primarily comprise of Americans.
However, during the weekend, TikTok’s Chinese owner ByteDance has said that the new company TikTok Global will be its subsidiary in which it will have 80 per cent ownership.
“It is clear that these articles (terms) extensively show Washington’s bullying style and hooligan logic. They hurt China’s national security, interests and dignity,” said the English version of the editorial published late on Monday and which was also carried in the newspaper’s Chinese edition.
“From the information provided by the U.S., the deal was unfair. It caters to the unreasonable demands of Washington. It’s hard for us to believe that Beijing will approve such an agreement,” the editorial read, echoing tweets the same evening by the newspaper’s editor-in-chief, Hu Xijin.
The Global Times is a tabloid published by the People’s Daily, the official newspaper of China’s ruling Communist Party and is believed that it mostly conveys that government and party’s position on various matters of importance.
While very little direct comment on the details of the deal have been made by the Chinese government, the country’s foreign ministry has repeatedly said that the US should consider offering a fair and non-discriminatory environment for foreign companies to do business in the country.
ByteDance has said that the deal has to be approved by regulators in both Beijing and Washington. A change in its tech export control list was made by China’s Ministry of Commerce in late August which, according to experts, was designed to give its regulators a say over any deal for TikTok.
There were no comments on the editorial from ByteDance and the US commerce ministry.
A deal that would satisfy Trump’s call for TikTok to be sold to an American firm or be shutdown in the United States had been reached by them, ByteDance, Oracle and Walmart said over the weekend.
However the deal has been presented differently by the companies in their public statements.
While Oracle and Walmart together said that the stakes of ByteDance in TikTok would be distributed to its investors including many who are based in the United States, the Chinese firm ByteDance has said that the new company TikTok Global will be majorly owned by it. The American companies have also said that the TikTok Global’s five-member board would mainly comprise of Americans.
(Sourcee:www.financialpost.com)
The two American companies had claimed during the weekend that in order to satisfy the administration of the US President Donald Trump which had planned to ban TikTok in the United States on security grounds, they had struck a deal with ByteDance under which they will take up minority stakes into a new mainly US-owned company, TikTok Global. The two companies had said that the board of the new company would primarily comprise of Americans.
However, during the weekend, TikTok’s Chinese owner ByteDance has said that the new company TikTok Global will be its subsidiary in which it will have 80 per cent ownership.
“It is clear that these articles (terms) extensively show Washington’s bullying style and hooligan logic. They hurt China’s national security, interests and dignity,” said the English version of the editorial published late on Monday and which was also carried in the newspaper’s Chinese edition.
“From the information provided by the U.S., the deal was unfair. It caters to the unreasonable demands of Washington. It’s hard for us to believe that Beijing will approve such an agreement,” the editorial read, echoing tweets the same evening by the newspaper’s editor-in-chief, Hu Xijin.
The Global Times is a tabloid published by the People’s Daily, the official newspaper of China’s ruling Communist Party and is believed that it mostly conveys that government and party’s position on various matters of importance.
While very little direct comment on the details of the deal have been made by the Chinese government, the country’s foreign ministry has repeatedly said that the US should consider offering a fair and non-discriminatory environment for foreign companies to do business in the country.
ByteDance has said that the deal has to be approved by regulators in both Beijing and Washington. A change in its tech export control list was made by China’s Ministry of Commerce in late August which, according to experts, was designed to give its regulators a say over any deal for TikTok.
There were no comments on the editorial from ByteDance and the US commerce ministry.
A deal that would satisfy Trump’s call for TikTok to be sold to an American firm or be shutdown in the United States had been reached by them, ByteDance, Oracle and Walmart said over the weekend.
However the deal has been presented differently by the companies in their public statements.
While Oracle and Walmart together said that the stakes of ByteDance in TikTok would be distributed to its investors including many who are based in the United States, the Chinese firm ByteDance has said that the new company TikTok Global will be majorly owned by it. The American companies have also said that the TikTok Global’s five-member board would mainly comprise of Americans.
(Sourcee:www.financialpost.com)
