9/22/2020 Beijing unlikely to approve ByteDance's TikTok deal with Oracle, according to Global Times - The Economic Times

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Business News › News › International › Business › Beijing unlikely to approve ByteDance's TikTok deal with Oracle, according to Global Times

Beijing unlikely to approve ByteDance's TikTok

deal with Oracle, according to Global Times
4
Reuters Last Updated: Sep 22, 2020, 10:18 AM IST
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Synopsis
ByteDance has said it will create a U.S. subsidiary partly owned by U.S. majors Oracle
and Walmart and managed mainly by Americans, to pacify the administration of U.S.
President Donald Trump which had planned to ban TikTok on security grounds.

Reuters
SHANGHAI: Beijing is unlikely to
approve an "unfair" deal Oracle Corp
and almart Inc said they have struck
with ByteDance over the future of
video-streaming app TikTok, state-
backed newspaper Global Times said in
an editorial.

The U.S. majors have said they will buy

into a new mainly U.S.-owned company, TikTok Global, with a board of
directors comprised mainly of Americans, as the parties work to pacify the
administration of U.S. President Donald Trump which had planned to ban
TikTok in the United States on security grounds.

In contrast, ByteDance has said TikTok Global will be its U.S. subsidiary with
80% ownership.

"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 version of the editorial published late on Monday
and which was also carried in the newspaper's Chinese edition.

"From the information provided by the U.S., the deal was unfair. It caters to
the unreasonable demands of Washington. It's hard for us to believe that
Beijing will approve such an agreement," the editorial read, echoing tweets
the same evening by the newspaper's editor-in-chief, Hu Xijin.
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9/22/2020 Beijing unlikely to approve ByteDance's TikTok deal with Oracle, according to Global Times - The Economic Times

IN THE SPOTLIGHT
The Global Times is a tabloid published by the People's Daily, the o icial Does your TV have Active Voice
Ampli er? This has.
newspaper of China's ruling Communist Party, but does not speak on behalf
of the party and government unlike its parent publication.

China's government has largely refrained from directly commenting on the RELATED MOST READ | MOST SHARED

deal's details, though its foreign ministry has repeatedly said the United
India to consider fresh responses from TikTok
States should o er a fair and non-discriminatory environment for foreign
TikTok is said to wrestle with two competing o ers
companies.
Tough road for TikTok clones

Twitter, TikTok in talks for possible merger: Report

The deal requires approval from regulators in both Beijing and Washington,
Microsoft is said to be in talks to buy TikTok in US
ByteDance has said. China's Ministry of Commerce in late August revised a
TikTok to government: Ready to store data locally
tech export control list that experts said would give it regulatory oversight
over any TikTok deal.
Top Trending News
Donald Trump PM Modi Speech Highlights
ByteDance and the commerce ministry did not immediately respond to
Economy News Defence News
Reuters' requests for comment on Tuesday.
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Over the weekend, ByteDance, Oracle and Walmart said they had reached a
News Headlines
deal that would satisfy Trump's call for TikTok to be sold to an American rm
or be shutdown in the United States.

However, the sides have framed the deal di erently in public statements.

Whereas ByteDance said it will majority-own TikTok Global, Oracle and

Walmart together said ByteDance's ownership would be distributed to its
investors - many of which are U.S.-based - and that ByteDance itself would
have no direct stake. They also said four of TikTok Global's ve-member board
would be American.

The unidenti ed author of the Global Times editorial objected to there being
only one board seat reserved for a Chinese national, as well as the stipulated
inclusion on the board of a U.S-approved "national security director".

It also denounced the need for a ByteDance to reveal source code to Oracle as
part of the latter's role of "trusted technology partner" and criticised the
likelihood of TikTok Global blocking Chinese access to its app.

TikTok has never been available in China. It has said it has over 100 million
monthly active U.S. users, compared with 600 million daily users at
mainland equivalent Douyin.

"As TikTok and Douyin should have the same source code, this means the U.S.
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9/22/2020 Beijing unlikely to approve ByteDance's TikTok deal with Oracle, according to Global Times - The Economic Times

can get to know the operations of Douyin," the editorial continued.

"If the reorganization of TikTok under U.S. manipulation becomes a model, it

means once any successful Chinese company expands its business to the U.S.
and becomes competitive, it will be targeted by the U.S. and turned into a U.S.-
controlled company via trickery and coercion, which eventually serves only
U.S. interests," the author wrote.

Beijing-based ByteDance itself currently has only two Chinese nationals on

its ve-member board, with the other three being foreigners running U.S.-
based companies.

ByteDance has also said Oracle's ability to inspect TikTok's source code before
investing is akin to previous instances of U.S. companies such as Microsoft
Corp sharing source code with Chinese technology experts.

READ MORE NEWS ON

The Global Times TikTok Donald Trump Oracle Corporation Walmart Inc

(Catch all the Business News, Breaking News Events and Latest News
Updates on The Economic Times.)

Also Read

India to consider fresh responses TikTok is said to wrestle with two

from TikTok competing o ers

Tough road for TikTok clones Twitter, TikTok in talks for possible
merger: Report

Microsoft is said to be in talks to buy TikTok to government: Ready to

TikTok in US store data locally

4 COMMENTS ON THIS STORY

Nilamkumar Buch 2 hours ago

Nobody should buy any China company, product or services. Let all sink and
cause nancial and employment loss to China.

Reciprocalrespect Commonsense 3 hours ago

Amusing to see public pasture animal's "confusion about concept of

ownership" hurt them where it #$^*#. Agile mentality which helped :-) silicon
vally to reach new heights, proving fatal when transported to healthcare
system etc.

Leon Fernandes 3 hours ago

a country has the right to protect it's interests.

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9/22/2020 Beijing unlikely to approve ByteDance's TikTok deal with Oracle, according to Global Times - The Economic Times

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