According to a report published by Reuters on Friday, the Chinese government is adopting a tough stand between that country’s BiteDance and the US government in a dispute between Tiktok. In that article, citing “people with direct knowledge of the case” explained that Chinese authorities closed the app entirely in the US, rather than splitting it into sales made under Duress.
Sources in the article say that, in the eyes of Chinese leaders, “a forced sale would make both BiteDance and China appear weak in the face of Washington pressure.”
In an executive order issued on August 6, the Trump administration said that Bytdance would sell Tickcock’s US assets within 45 days, or be banned from doing business with American companies and individuals. That 45-day period ends on Sunday 20 September.
Although ByteDance has been in sales negotiations with several major US companies, the Chinese government says it needs to review potential deals for approval. This process is likely to take a long time, which means that any proposed division is in danger of expiring.
Walmart (NYSE: WMT) Is partnering with Microsoft (NASDAQ: MSFT)In an effort to hold a stake in TikTok. While this partnership is central to their discussions Oracle (NYSE: ORCL) Apparently also going on. The circumstances of the Microsoft-Walmart and Oracle negotiations are unknown.
The growing rift between the US official and ByteDance stems from security concerns about the video sharing app. This government has accused ByteDance of harvesting a “vast swath of information” from users who feel it can be used by China’s leadership for nefarious purposes. ByteDance revokes the executive order; That case is pending.
Like other recent developments in the situation, Microsoft, Walmart and Oracle have not yet commented on Reuters’ article.