China’s stance on TikTok deal ‘not a green light with no strings attached’, analysts say
In 2020, a similar arrangement between ByteDance, Oracle and Walmart fell apart after China revised its export control list
The Chinese commerce ministry’s latest remarks on the TikTok deal in the US signalled acceptance rather than approval, as Beijing “hopes” the arrangement will comply with Chinese laws and strike a balance between rival interests, analysts say.
The Chinese Ministry of Commerce, which oversees trade and export controls, declared its position a week after TikTok announced the formation of a joint venture, controlled by a consortium of American investors, that would take over its operations in the US.
“The Chinese government hopes that enterprises will reach solutions that comply with Chinese laws and regulations and strike a balance of interests,” spokeswoman He Yongqian said on Thursday.
“This is not a green light with no strings attached,” said Irina Tsukerman, president of strategic advisory firm Scarab Rising, adding that complying with Chinese laws and regulations was “the core condition”.
“Beijing has largely avoided strong public comment on this issue, expressing that beyond legal compliance, the details of a deal are a commercial matter,” said Tom Nunlist, associate director of tech and data policy at research service Trivium China.
