The new rules that Beijing has introduced for the export of new technologies only complicate the takeover battle for the American activities of the hyper-popular TikTok.
The Chinese Ministry of Commerce decided this weekend that it is still fine-tuning its export policy for artificial intelligence technology. Companies using speech and text recognition technology or using algorithms for detailed data analysis will now have to apply for a license from the Ministry of Commerce before exporting abroad.
Due to the new measures, tempers seem to rise even higher in the already harsh tech war between China and the United States. Especially the soap around the extremely popular video app seems to be a bit more complicated.
Last straight line takeover conversations
But Beijing’s new move now makes that a little less evident. Before selling its US activities, parent company ByteDance will first have to check carefully whether it complies with the new rules on technology exports, a government source told the Chinese news agency Xinhua.
Whether or not Tiktok is US-owned, the video app will certainly continue to run in part on algorithms developed in China by ByteDance. And simply handing that over to a foreign buyer would no longer be possible under the new rules.
The fact that China is now changing its export policy for new technology seems anything but coincidental – the last time Beijing did this was in 2008. But according to the Ministry of Commerce, it was necessary to intervene because science and technology are evolving very quickly today.