A woman uses her phone as she passes by the ByteDance headquarters in Beijing, China, on Friday, Aug. 7, 2020. The Chinese government is complicating the U.S.-government-ordered sale of U.S. TikTok assets. China on Friday, Aug. 28, 2020 introduced export restrictions on artificial intelligence technology, seemingly including the type that TikTok uses to choose which videos to spool up to its users. That means TikTok's Chinese owner, ByteDance, would have to obtain a license to export any restricted technologies to a foreign company. (AP Photo/Ng Han Guan)
By Tali Arbel and Zen Soo
The Chinese government is complicating the U.S.-government-ordered sale of U.S. TikTok assets.
China on Friday introduced export restrictions on artificial intelligence technology, seemingly including the type that TikTok uses to choose which videos to spool up to its users. That means TikTok's Chinese owner, ByteDance, would have to obtain a license to export any restricted technologies to a foreign company.
The Trump administration has threatened to ban TikTok by mid-September and ordered ByteDance to sell its U.S. business, claiming national-security risks due to that Chinese ownership. The government worries about user data being funneled to Chinese authorities. TikTok denies it is a national-security risk and is suing to stop the administration from the threatened ban.
Prospective buyers for U.S. TikTok assets include Microsoft and Walmart and, reportedly, Oracle. Oracle has declined to comment.
On Saturday, Chinese state-owned media outlet Xinhua News Agency quoted government trade adviser and professor Cui Fan, who said that Bytedance should consider whether it should halt negotiations to sell TikTok in the U.S.
"As with any cross-border transaction, we will follow the applicable laws, which in this case include those of the U.S. and China," said ByteDance General Counsel Erich Andersen.
The Chinese government's new restrictions may be a "tactic to drive up valuation" of TikTok, said RBC Capital Markets analyst Alex Zukin, who still expects a deal announcement "relatively soon." The Wall Street Journal reported last week that ByteDance is asking for $30 billion for the U.S. operations, but has faced resistance from bidders. The Journal said in a Sunday story that deal talks had "slowed."
Microsoft and Walmart declined to comment on Monday.
White House press secretary Kayleigh McEnany, during a White House briefing, did not directly answer whether the administration would accept a sale of U.S. assets of TikTok if the deal were subject to Chinese government approval. "Negotiations are ongoing on a sale of TikTok so we are not going to get in the way of those negotiations," she said.
—
Associated Press writer Kevin Freking contributed to this report from Washington.
U.S. markets opened lower as disappointing Meta earnings dragged down the tech-heavy Nasdaq. Today, investors will be watching for Amazon's Q4 earnings report set for release after the market close. Greg Swenson, Founding Partner, Brigg Macadam joined Cheddar's Opening Bell to discuss.
Johan Grahn, Head of ETF Strategy at Allianz Investment Management, breaks down the major risks to the markets including how the FED may react to upcoming CPI data.
Markets opened mostly higher led by gains in the tech sector on strong Q4 earnings. It comes after a tumultuous January which saw stocks suffer one of their worst months since the early days of the pandemic. Jim Worden, Chief Investment Officer, Wealth Consulting Group joined Cheddar's Opening Bell to discuss early market activity.
Adam Coons, Portfolio Manager at Winthrop Capital Management, talks about the last jobs data, and breaks down the future of social media and tech platforms.
Women's health company Organon will give its over 9,000 employees a paid day off on International Women's Day.
The move comes as the company aims to recognize the growing health inequities women have faced during the Covid-19 pandemic. Kevin Ali, Chief Executive Officer, Organon joined Cheddar's Opening Bell to discuss.
CLMBR is hoping to become the next big thing in connected fitness. The brand offers a high intensity, low impact workout with on-demand, instructor-led classes. Avrum Elmakis, CLMBR's CEO and founder, joined Cheddar to discuss where the company is heading next.
Peloton is reportedly drawing interest from multiple suitors. According to the Wall Street Journal, Amazon is considering acquiring the exercise bike company as it looks to expand into the health and wellness technology industry. Hatem Dhiab, managing partner at Gerber Kawasaki, joined Cheddar to discuss Peloton's future and which company might be its best bet as a buyer.
Amazon shares jumped north of 13 percent in after-hours trading as the E-commerce giant posted a beat on earnings in its fourth quarter. Amazon saw particular success in its cloud computing business, as well as its stake in EV startup, Rivian after its massive IPO. Deren Baker, CEO, Edge by Ascential joined Cheddar's Opening Bell to discuss.
