ByteDance has applied for a tech export licence in China since it races to secure a deal with Oracle and Walmart it expects will stop US government plans to ban its TikTok video-streaming app on security grounds.
The Beijing-based company submitted the application to Beijing’s municipal commerce bureau and is awaiting a decision, it said in an announcement on its Toutiao online news platform on Thursday, without speaking to continuing discussions over its US operations.
The application comes about a month after China revised its own list of technology subject to export bans or limitation for the very first time in 12 years, in a manner which experts mentioned gave the government a state within any TikTok deal.
ByteDance has said its arrangement with Oracle and Walmart will see the creation of a standalone US business entity and does not involve any transfer of technologies though Oracle will have the ability to inspect TikTok code.
It’s also said the deal requires approval from both China and the United States.
However, the firms have issued contradictory statements within the conditions of the agreement they reached with the White House, casting uncertainty over whether it is going to hold.
ByteDance stated it will establish a US subsidiary called TikTok Global where it will own 80%.
Oracle and WalMart, however, said majority ownership of TikTok Global are in American hands, complying with a 14th of August executive order from US President Trump that ByteDance relinquish possession of TikTok within 90 days.
Chinese state media outlets China Daily and the Global Times this week said they see no justification for China to approve the deal that Oracle and Walmart said they’ve struck ByteDance, calling it based on “bullying and extortion”.
“It is time that other states watched through the bizarre farce of the TikTok drama, understood what’s really at stake, also joined hands to oppose these blatant robberies and keep up a fair international business environment,” it stated.
The team at Platform Executive hope you have enjoyed this news article. Initial reporting via our official content partners at Thomson Reuters. Reporting by Brenda Goh. Editing by Himani Sarkar and Christopher Cushing.
To stay on top of the latest developments across the platform economy and gain access to our problem-solving tools, databases and comprehensive content sets, you can subscribe for just $19 per month.