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.
This November, Philips Norelco is partnering with Movember® in the United States and Canada to urge men to tackle health issues that are right under their noses. Brett Bardsley, Category Leader, Philips Grooming & Beauty, and Dr. Jake Taylor MD, MPH, Chief Urology Resident at NYU Langone Health, join None of the Above to break down how this partnership is more than just growing & grooming a Mo all month long, what men should know about their own mental and physical well-being, and the impact Philips continues to have as a global health technology company supporting men’s health programming and delivering meaningful innovations.
Learn more about how to get involved at Philips.com/Movember
Stocks fell into the red on Wednesday after new data heightened fears over inflation. Vince Lorusso, Co-Founder and portfolio manager at Changebridge Capital, joins Cheddar News' Closing Bell where he says recent history suggests investors to buy the dips.
Food delivery giant DoorDash is acquiring European food delivery company Wolt. The all-stock deal is valued at $8.1 billion and is expected to close in the first half of 2022. The companies say they share a mission to build a global delivery platform. Gerber Kawasaki investment advisor Eva Agi joins Cheddar News' Closing Bell to discuss what the deal means for Doordash, as well as its customers and investors.
Identity verification startup Socure recently raised $450 million dollars in a series E round, bringing the company's valuation to $4.5 billion. Socure says it is now the highest-valued private company in the identity verification space, and that the funds will be used to accelerate its mission to verify 100% of good identities and eliminate identity fraud across all industries. Socure Founder and CEO Johnny Ayers joins Cheddar News' Closing Bell to discuss.
On Tuesday, an Oklahoma court overturned a ruling in a case against Johnson & Johnson for liability in the opioid crisis, and on Wednesday a North Carolina judge put a pause on the thousands of lawsuits accusing the company's baby powder product of containing cancer-causing asbestos. Elizabeth Burch, a professor at the University of Georgia school of law, joined Cheddar to break down the legal results that the pharmaceutical giant had long been hoping to get.
3D printing company Velo3D released its first earnings report since going public in September. CEO and co-founder Benny Buller joined Cheddar to discuss the company's bottom line miss while noting he expects revenue for the year will hit $26 million. Buller also expressed optimism about the company achieving $89 million in revenue in 2022.
Wheels Up CEO Kenny Dichter talked to Cheddar about the aviation company's Q3 earnings report, the increase in memberships, and rising fuel costs. He attributed some of the increase in the number of members and rising revenue to lingering concerns about commercial flying amid the pandemic and noted that legacy members have used the service more frequently than in previous years. Dichter also explained that a rise in pricing is planned for December.
