TikTok Deal: Chinese State Media Criticizes US Deal As ‘Dirty’ And ‘Disgusting’



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The editorial boards of the China Daily and the Global Times, both State Posts: This week you criticized a deal that would give American companies at least some ownership in the short-form video app. TikTok’s parent company ByteDance is based in Beijing.

“What the United States has done to TikTok is almost the same as a gangster forcing an unreasonable and unfair business deal with a legitimate company,” China Daily wrote in an editorial published on Wednesday, calling the deal a “dirty stunt and dishonest”.

The terms of the tentative deal for China’s most successful global application have caused much confusion.

Last weekend’s initial announcement implied that ByteDance would continue They own the majority of Tiktok in the future, raising questions about how that could resolve the Trump administration’s national security concerns over Chinese control of the app and its data.

But Trump has since indicated that investors Walmart (WMT) and Oracle (ORCL) would be “owner of the majority stake.” A person familiar with the deal told CNN Business earlier this week that a new American entity: TikTok Global will be partially owned by ByteDance’s international and Chinese investors, but that ByteDance itself will own zero percent of the company which will be created by the agreement to run the application outside of China.

“It appears that TikTok can remain in the United States. But only if ByteDance allows Oracle and Walmart to take over the company,” China Daily added. “China has no reason to green light such an agreement.”

The Global Times, a state-run tabloid, also criticized the deal this week in two editorials calling on Chinese regulators to block it.

“It is difficult for us to believe that Beijing will approve such an agreement,” wrote the Global Times in an editorial. In a second article titled “TikTok’s extortion deal is a nasty tactic,” the publication added that “we must not allow Washington to control the sustenance of China’s technological development in the future.”

Chinese state media are a powerful tool in the country’s propaganda machine, and the various media and their editorials are often seen as barometers of sentiment among top officials. Some publications, like the Global Times, are more aggressive than others.

Notably, the China Daily and Global Times editorials were published in English, an indication that TikTok’s editorials are likely intended for a foreign audience. Editorials in China’s state media can also act as test balloons for ideas or to send a message to Western governments. (China Daily is an English newspaper, but the Global Times also has a much more popular Chinese edition. Similar editorials were also published in that issue).

It is also not entirely clear to what extent Beijing still needs to review the deal.

Last month, Chinese regulators introduced new rules governing the sale of certain types of technology to foreign buyers, a change that experts noted would likely require ByteDance to obtain permission from the government before selling TikTok to a foreign company. ByteDance has said that Oracle could review the source code of the application, but that the agreement does not involve the transfer of its algorithms and technologies.

Meanwhile, a source familiar with the negotiations told CNN Business this week that ByteDance is not concerned about China’s regulatory approval. The source said there are still some details to be worked out in the United States, indicating optimism that the deal could still be closed despite the media and political storm.

– Selina Wang contributed to this report.

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