According to the reports in an English-language newspaper by the Chinese Communist Party (CCP), China cannot approve the TikTok sale. The state-run media agency opined that the American deal was dirty and unfair for allowing Oracle and Walmart to effectively takeover TikTok by using mafia tactics such as bullying and extortion.
The reports argued that TikTok’s success in business has somehow made the US feel uncomfortable. Projected revenue of the video sharing app at the end of this year was about 1 billion USD. China said that it may have prompted the US President Donald Trump to use National Security as an excuse to ban the viral making app.
The Deadline For TikTok Sale Has Already Passed
According to Trump, 20th September was probably the final deadline which is over and involved parties could not settle their terms. The parent company and bidders of TikTok conveyed conflicting messages which confused the investors and the users.
The deal was largely vulnerable from the beginning due to unhealthy trade relationships between the US and China. Reportedly all three; ByteDance, Oracle, and Walmart were not sure how to proceed with the future ownership of the app. Meanwhile, China presented its discontent on the whole deal as it was largely predicted by many experts.
Microsoft was also interested a while back due to which Walmart joined as well. However, ByteDance rejected Microsoft’s offer and embraced Oracle’s.
The Deal Was Doomed From The Start
The parent has maintained that it disassociated itself from the Chinese authorities, which is a precondition for it to operate in western countries who are concerned about their privacy. China had already modified its export rules to restrict the sale of certain AI-technologies; which ultimately complicated the TikTok sale deal.
Since ByteDance and China’s state-run media have agreed to exclude technological transfers in trade, the app was never meant to be sold. Chinese government suggested ByteDance to strictly consider ending its negotiations for selling TikTok’s US operations.
China Responds To The Pressure on TikTok By The US Government
Just before the supposed deadline, 20th September, China ordered the US to stop with the bullying behavior towards the video sharing app. It also made it clear that it can take countermeasures against the US for the purpose of safeguarding the interests and legitimate rights of Chinese firms.