No Sale for You
As the trade war between China and the United States persists, China has continued strengthening its export controls. This comes at a time when Donald Trump has ordered TikTok to stop or sell its U.S. operations. What does this mean for negotiations?
China’s newly imposed restrictions on technology exports will require government approval for the export of different technologies. These rules are expected to create a new political hurdle for TikTok’s parent company ByteDance and the length of time it will take to finalize a deal.
Exports covered in the list of new restrictions include some forms of artificial intelligence such as voice recognition and content recommendation. Not only will the Chinese government review businesses and require them to obtain an approved export license before having the ability to make a deal, but the entire process can take up to 30 days.
For a company like TikTok, that U.S. President Trump has given a September 15 deadline to sell its U.S. operations, restrictions like these can cause a major problem for the company. It is quite possible that TikTok would have to close its U.S. business if Chinese regulators don’t give ByteDance regulatory approval.
The race to make a deal just got longer.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.