China – Changing The Rules

  • Cui Fan, a Professor, said that these rules may also apply to ByteDance
  • Chinese government announced new Export changes on August 28.
  • Doing business with China is the same as doing business with the Chinese totalitarian government.

The sale of the American division of the social network TikTok may require the consent of the Chinese government. This was announced by the Professor at the University of international business and Economics in Beijing Cui Fang according to the  Xinhua News Agency.   Xinhua News Agency or New China News Agency is the official state-run press agency of the People’s Republic of China.

The US President Donald Trump.

Xinhua is the biggest and most influential media organization in China, as well as the largest news agency in the world in terms of correspondents worldwide.

Cui Fan, a Professor At the University of International Business and Economics in Beijing, said that these rules may also apply to ByteDance, which is involved in negotiations for the sale of the American division of the social network TikTok. Cui Fan added that ByteDance may need to suspend negotiations to obtain the appropriate license.

The changes made relate to the catalog of export-restricted technologies. From now on, without a license from the Chinese government, local companies are not allowed to sell their software tools related to text analysis, voice recognition, and content recommendations abroad. This covers pretty much all digital spectrum.

Earlier this month, US President Donald Trump issued an executive order banning TikTok and WeChat from US.  It comes as a result of the security concerns. Earlier TIkTok was accused on hosting child pornography in its platform.  Twitter became interested in purchasing TikTok.

Triller also said that together with the British Fund Manager, Centrikus Asset Management, it has submitted an application to buy TikTok for $20.0 billion. According to the Thriller site, “Thriller is a fun and unique social platform where users can create and share their own music video creations. It is a mobile app that allows you to choose a song, lip-sync, and create a catchy video to a selection of that song.”

The Thriller App that allows you to create your own music and videos.

However, it is unclear now, given the new changes implemented by the Chinese government. It is plausible, Chinese government can block the deal.

Furthermore, the Chinese Communist government updated the export measures on Friday, August 28.  The new rules make it more difficult to export a number of technologies, including those used for the operation of a personal recommendation system in social networks.

Doing business with China is the same as doing business with the Chinese totalitarian government.

China launched their new Crypto-Yuan (BSN) on Saturday, April 25, in Beijing. It gives the Chinese government the opportunity to gain information on foreign nationals and foreign corporations and businesses. The system is not anonymous or private. One would need permission from Chinese government to withdraw funds from that platform.

Creating joint projects or ventures with China is dangerous. This week, Canada learned first hand the cost of China partnership. Collaborating in a joint project on the Coronavirus vaccine, Canada fulfilled its obligations. Yet, China refused to ship vaccine for testing to Canada. China just changed the rules.

Overall, even purchasing Chinese software could be a security risk. It could be filled with undetected malware and threaten western national security.

There are expected to be more announcements by the Chinese government, as the West and China stand off escalates.

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Christina Kitova

I spent most of my professional life in finance, insurance risk management litigation.

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