If ByteDance – which happens to be the China-based owner of the popular viral video app in TikTok doesn’t end up finding an American buyer soon, Tiktok will possibly face a ban in the US. Now though, there is the potential for yet another problem that the social media giant will face : the Chinese government.
Indeed in accordance with a latest report, it has been suggested that officials from China are willing to let TikTok just shut down rather than have the President of the US in Donald Trump force its sale in the US. And this isn’t just a matter of opinion – as the Chinese government does in fact have the means and the power to severely kneecap any acquisition.
Sources that claim to be near the situation go on to suggest that the Chinese government is in fact open to blocking the sale of TikTok’s secret sauce : its algorithm.
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After President Trump proceeded on to sign an executive order which lead towards the ban of TikTok, China too quickly acted as the country proceeded on to revise a list of technologies which would actually require governmental approval before being exported out of the country. And in fact TikTok’s algorithm would actually qualify as one of such technologies.
As to why China is looking towards a prospect such as this : it is being said that Chinese officials are actually concerned over the optics of allowing Trump to force a Chinese company into selling the app to a US company. Indeed such officials are of the opinion that selling the app to a US company will make both ByteDance and China look “weak.”
Nonetheless, while both Walmart as well as Microsoft have gone on to show an interest in the acquisition of TikTok – a sale has not yet been confirmed by an stretch of the imagination. The executive order which was signed by President Trump gives TikTok until November to go and find a buyer.