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Beijing Unlikely to Approve TikTok Deal with Oracle, Walmart: Reports

Beijing Unlikely to Approve TikTok Deal - Appy Pie

Beijing is most unlikely to approve ByteDance’s deal with Oracle Corp and Walmart Inc. with the video-streaming app TikTok, a state-backed Chinese newspaper said in an editorial.

ByteDance has announced that it will create a US subsidiary, TikTok Global, which will be partly owned by Oracle and Walmart.

The US experts have revealed that they will buy into a new mainly the US-owned company, TikTok Global, with a board of directors comprised mainly of Americans, as the parties work to pacify the administration of US President Donald Trump which had planned to ban TikTok in the United States on national security issues.

However, ByteDance has said TikTok Global will be its US subsidiary with 80 percent ownership.

The English version of the editorial published was also carried in the newspaper’s Chinese edition said, “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.”

The editorial further read “The deal was unfair. It caters to the unreasonable demands of the US. It is very hard for us to believe that such an agreement will be approved by Beijing.”

The unidentified author of the 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 US-approved national security director.

However, the government of China has largely refrained from directly commenting on the deal’s details, though its foreign ministry has repeatedly said the United States should offer a fair and non-discriminatory environment for foreign companies.

ByteDance said that the deal requires consent from regulators in both Beijing and Washington.

China’s Ministry of Commerce last month had revised a tech export control list that experts said would give it regulatory oversight over any TikTok deal.

China’s Ministry of Commerce also condemned the need for ByteDance to reveal source code to Oracle as part of the latter’s role of trusted technology partner and criticized the likelihood of TikTok Global group blocking Chinese access to its app.

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

Over the weekend, Oracle, Walmart, and ByteDance said they had reached a deal that would satisfy President Trump’s plan for TikTok to be sold to a US firm or shutdown in the country.