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China emphasized on Thursday his right to approve or block the sale of technology abroad, confirming that he will play a critical role in selling TikTok’s operations in the United States to suitors, including Microsoft Corp. and Oracle Corp.
Beijing’s claim jeopardizes negotiations on the sale of ByteDance Ltd.’s prized international asset, a complex deal already under scrutiny by the Donald Trump administration. On Friday, the Chinese government added various artificial intelligence functions to a list of restricted export technologies, effectively obtaining the right to block a deal by targeting functions such as essential recommendation algorithms for the viral video service.
The regulatory changes are not targeted at specific companies, Gao Feng, a spokesman for the Ministry of Commerce, highlighted during a weekly online briefing. But companies should check with the relevant government agencies in case any technology they employ is included in the list, he added.
“If related companies are transferring technology abroad during trade, investment or technical cooperation governed by regulations, it is recommended that they immediately consult the offices of the department of commerce at the provincial level and handle it in accordance with the law. “, said.
Read more: ByteDance boss reconsiders TikTok options after China’s new rules
Beijing’s last-minute entry and its opaque deal approval process increase the likelihood that a sale will stop and Trump will go ahead with a TikTok ban ahead of the November election. The need for approval from two geopolitical rivals is likely to push any final deal beyond the November vote in the US, a person familiar with the matter has said. said.
ByteDance founder Zhang Yiming is now said to have reconsidering its options and it may well take advantage of Beijing’s last-minute involvement to close a deal. For China, the move helps it gain leverage to prevent what state media called “theft” of technology, while underscoring to the United States that it has intellectual property worth protecting.
Read more: China throws a monkey wrench at Trump’s plan to force TikTok sale
– With the help of Zheping Huang and Miao Han
