A deal China’s ByteDance has struck with Oracle and Walmart on the future of its viral video-streaming app TikTok is unlikely to receive approval from the Chinese communist government, state-backed newspaper Global Times has said in an editorial.
ByteDance has stated it will produce a US subsidiary partly owned by US majors Oracle and Walmart and managed largely by Americans, to pacify the administration of US President Trump which had intended to ban TikTok on safety grounds.
“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 edition of the editorial released late yesterday, that was also carried from the newspaper’s Chinese variant.
The unidentified writer listened to a requirement that four of the five board seats of TikTok Global be inhabited by Americans and only one reserved for a Chinese national, as well as the addition of a US-approved “national security director”.
It also denounced a necessity that ByteDance disclose TikTok’s source code to Oracle within the latter’s stake purchase, in addition to the separate management of TikTok from its related Chinese app Douyin.
“If the reorganisation of TikTok under US manipulation becomes a model, it means once any successful Chinese company expands its business to the US and becomes competitive, it will be targeted by the US and turned into a US-controlled company via trickery and coercion, which eventually serves only US interests,” the author wrote.
The Global Times is a tabloid published by the People’s Daily, the official newspaper of China’s ruling Communist Party, but does not speak on behalf of this party and government unlike its parent book.
Over the weekend, ByteDance and Oracle announced they had reached a deal that could suit Trump’s call for TikTok to be marketed to an American purchaser or face shutdown in the United States.
But, the two sides have framed the deal differently in public statements.
ByteDance has said TikTok Global will be its subsidiary of that it will own 80%.
Oracle has said ByteDance’s possession would be distributed to ByteDance’s investors, many of which are based in the US and that the Beijing-based company itself could not have any stake in TikTok Global.
The deal needs approval from regulators in Beijing and Washington.
The team at Platform Executive hope you have enjoyed the ‘China unlikely to approve ByteDance’s TikTok deal with Oracle‘ article. Initial reporting via our official content partners at Thomson Reuters. Reporting by Josh Horwitz. Editing by Christopher Cushing.
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