Key algorithms become the focus of tiktok acquisition case, British media: potential buyers give four acquisition plans

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[Global Times reporter Bai Yunyi, Li Qiaoyi] as president Trump’s ban on tiktok, a short video platform affiliated to byte skipping, is approaching, details of tiktok’s US business sales have attracted more and more attention. Tiktok’s potential buyers are discussing four acquisitions with byte skipping, including the absence of key algorithms at the time of the acquisition, Reuters reported on Tuesday. The report said that prior to China’s update of its export control regulations, resulting in the transaction related to the tiktok acquisition stalled. However, the Ministry of Commerce of the people’s Republic of China said on the 3rd that the “catalogue of Technologies Prohibited from export and restricted in China” (hereinafter referred to as the catalogue) is not targeted at any specific enterprises.
Potential buyers and byte hopping are also considering plans to require China to approve the transfer of tiktok’s algorithm to its U.S. business, authorize the algorithm to the acquirer, and seek a transitional period from the U.S. National Security Council, which oversees the deal, to find an alternative algorithm, Reuters quoted three sources as saying.
Until this week, byte hop had been looking for a suitable buyer for tiktok to comply with an earlier US executive order to divest its U.S. operations. However, the Chinese government last week updated its export control rules, according to which some analysts believe that tiktok will be restricted from selling algorithmic technology to push videos to users.
“It is not clear which option will be adopted. As time goes on, the possibility of an agreement is diminishing. If no agreement is reached on the sale, tiktok may be banned in the United States. ” According to Reuters analysis, if tiktok is not included in the sale, although it can bypass China’s export control regulations, it will be a big bet for Microsoft and Oracle, because they must quickly come up with alternatives to the algorithm.
It is not clear whether China’s new rules allow this to happen within the required time frame for negotiating the transition option with the Cfius, the source said. In view of the deteriorating relationship between China and the United States in the fields of trade and network security, seeking China’s approval, the plan to transfer tiktok’s algorithm to the buyer may enlarge the geopolitical risk of the transaction. As for allowing byte skipping to license the algorithm to tiktok’s purchasers, it is likely that CFIUS will not agree, as the agency hopes that byte skipping will completely divest tiktok’s U.S. business. As of 24:00 on the 3rd, byte skipping, Microsoft and Oracle, regarded as the most likely buyers of tiktok, and the White House did not comment on the report.
In response to concerns from the outside world about the recent adjustment and release of the catalogue of China’s export prohibited and restricted technologies by the Ministry of Commerce and the Ministry of science and technology, a spokesman for the Ministry of Commerce, Gao Feng, said at a regular press conference on the 3rd that the revised catalogue was an example of the 2008 catalogue in accordance with international practice in accordance with the development situation of science and technology and the need to promote international scientific and technological exchanges and cooperation Line adjustment, not for specific enterprises. He also said that if the relevant enterprises involved in the transfer of technologies listed in the catalogue to overseas in trade, investment or foreign economic and technological cooperation, it is suggested that enterprises should consult the provincial competent commercial authorities in time and handle them in accordance with relevant regulations.
Cui Hongjian, an international relations scholar at the China Institute of international studies, told the global times on the 3rd that the revision of the catalogue is a necessary step for China to protect the security of its independent R & D core technologies, because China’s rise in the field of science and technology in recent years is making China gradually aware of the need to protect its own technology. He believes that the catalogue will not have a great impact on China’s technology import and export, but may have an impact on the overseas industrial layout of Chinese enterprises.
Liu Dingding, an independent science and technology analyst, said in an interview with the global times on March 3 that according to the new rules, the tiktok acquisition may involve the export of core technologies, so the transaction between tiktok and potential US buyers must be approved by the Chinese and American governments. However, whether it can be traded or not, tiktok is unlikely to exit the US market.
The US government is discussing the scope and effective date of the ban on wechat and tiktok, which is expected to be announced on September 20, according to a source quoted on the 3rd. Softbank is also studying a joint bid for tiktok’s business in India, according to the company. In addition, Tencent said on Thursday that it would contact Indian regulators to ensure that many of its applications remain available in the Indian market.
On the issue of tiktok and wechat, China’s Foreign Ministry spokesman Hua Chunying said on the 3rd that the relevant policies and measures of the US side have nothing to do with national security, but rather the killing, bullying, and extortion of Chinese enterprises, which is essentially a government coercion transaction. China urges the US side to correct its mistakes and stop unreasonable crackdowns on Chinese enterprises.