Tikok faces a possible ban in the states if ByteDance, the owner of China’s popular viral video app, does not soon find an American buyer. However, there is now possibly another problem for viral video apps: the Chinese government.
According to a report from China, Chinese officials may be willing to just shut down Tickcock rather than force President Donald Trump into selling them in the US, this is not just an opinion. The Chinese government actually has the power to severely end any takeover.
Sources familiar with the situation tell Reuters that the Chinese government is open to stopping the sale of Tikotok’s secret sauce: its algorithm.
After Trump signed a threat to ban Tiktok in the US if it did not cut ties with ByteDance, China took to revising a list of technologies that could be exported out of the country. Prior government approval will be required. Ticketok’s algorithm would qualify as one of those techniques.
And why would China do this? Sources say that Chinese officials related Trump’s optics of allowing a Chinese company to sell the app to an American company. These officials believe that this makes both BiteDance and China “vulnerable”.
It is unclear if Tiktok does not sell to a US-based company.
The Trump administration says it attempts to ban the app due to cybersecurity issues over ByteDance’s relationship with the Chinese government. Legal experts have the ability to do this for administration. Ticcott has been against the Trump administration over the ban. The company claims that Trump wants to ban the app for political reasons, not because of security issues.
Companies have shown interest in acquiring Tickcock, although the sale has not been confirmed. Trump’s executive order gives Ticketock until November to find the buyer.
But if the TikTok algorithm is not included in the sale, it can make the deal a bit more difficult.