TikTok may have to obtain a license from the Chinese government before it can sell its U.S. operations
TikTok may be facing a new obstacle in its plan to sell its U.S. operations in order to avoid a potential ban.
The Chinese government is implementing new rules on AI (artificial intelligence) technology exports, according to a new report from the New York Times. The new rules may require TikTok to obtain a license before it’s able to sell its operations.
The new regulations require companies that want to export technology that uses text analysis, voice recognition and content suggestions to first obtain a license from the Chinese government.
Further, the Wall Street Journal reports that a Chinese government official has said that TikTok’s parent company ByteDance should “seriously and cautiously” rethink and halt its plans to sell TikTok.
Microsoft is currently considered the front runner as a potential buyer, and has reportedly teamed up with WalMart in its bid. Recent reports have suggested that Twitter, Oracle and even Netflix had talks with TikTok about possible deals.
This all comes as TikTok CEO abruptly resigned on August 27th amid, less than six months into the position.
On August 6th, President Trump signed an executive order banning U.S. business with TikTok. The order essentially aims to force TikTok to sell its U.S. operations or face a ban. The rule was initially meant to take effect in mid-September but has since been extended to November 12th.
Source: New York Times, The Verge