CHINA-ECONOMY: CHINA'S MINISTRY OF COMMERCE PLACES OBSTACLES IN SALE OF TIK TOK
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The Ministry of Commerce (MofCom) and the Ministry of Science and Technology (MoST) released a revised export control catalogue on August 28. The catalogue was revised from its 2008 version, and 23 new technologies were added to the list of prohibited exports. Among the technologies subject to new export control restrictions were: AI interface technology; Personalized push notification algorithm technology for mobile apps; Laser technology; and Drone technology. The first two will directly impact the TikTok sale as TikTok owner ByteDance, will be required to take two approval steps when exporting restricted technologies, both before negotiating deals and after signing export contracts. Each approval process can take up to 15-30 working days. The need for pre-approval to negotiate technology sales will obviously upend the ongoing TikTok talks immediately. If Chinese regulators slow roll the approvals, it would push a potential deal past the September 15 deadline that US President Trump has set for the sale. Meanwhile, there are reports that some Chinese government officials want the US purchase of Tik Tok to go through.
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