Keeping the absolute control of tiktok in the United States through ingenious institutional arrangement of byte skipping


The original title keeps the absolute control of tiktok America through ingenious institutional arrangement
Shen Yi, columnist,
On September 15, 2020, the fate of tiktok, which is highly concerned by all parties, has taken a dramatic turn
First of all, there is a third option which is quite different from “selling” or “closing” its business in the United States, that is, “cooperation” with Oracle;
Secondly, after the proposal was submitted to the U.S. Treasury Department, U.S. Treasury Secretary noumcin showed an extremely rare positive attitude and made it clear that it would be submitted to the White House for deliberation;
Third, on the afternoon of the 15th, that is, in the early morning of Beijing time, Cramer, an old host of CNBC in the United States media and co hosted the program with President Trump’s chief economic adviser, Mr. kudelow, publicly said that “the fair has been approved”, and Oracle will become the “dark horse” in this transaction, participating as a “trusted supplier” and providing data for tiktok Service.
Then, U.S. state leader trump said in an interview with the media late on the afternoon of the 15th that “wait and see, I hear that they (nail bone inscriptions and tiktok) are very close to reaching an agreement.”.
In theory, Trump’s public statement of US national leader and the cautious and positive attitude of US Treasury Secretary noumcin in in the face of the media have theoretically cleared the most core obstacle for the transaction: the U.S. Treasury Department is the superior unit of the US foreign investment review board (cifus), and tiktok was forced to fall into the “sell” or “close down” situation Because, it is cifus’s audit of tiktok that endangers the national security of the United States.
“Wait and see, I hear they are very close to an agreement,” trump told the media.
In an interview with the media, mnuchin also released positive signals
It should be pointed out that among the current programs, the most noteworthy one is the way in which oracle bone inscriptions intervene. According to the existing materials, all parties’ analysis points out that Oracle’s intervention mode is very similar to the previous cooperation mode between apple and Guizhou on cloud, and between 2015 and 2018, Microsoft and Deutsche Telekom in Germany, that is, for specific types of data, which usually refers to user data obtained locally, a “trusted” local partner is designated to realize a certain type of data The form of “data trusteeship” dispels reasonable concerns about national security and user data protection through the way of trusted service providers with specific identities, while ensuring that the negative impact on the normal operation of the company is minimized.
From 2015 to 2018, the data hosting service implemented by Microsoft in Germany and Deutsche Telekom is highly similar to the cooperation between tiktok and Oracle in the background: the challenge Microsoft faced at that time was that in May 2013, Snowden disclosed the “prism” system in the United States; relevant materials showed that, including the mobile phone of German Chancellor Angela Merkel, the US intelligence agencies implemented the “prism” system in Germany There is a potential risk that the data of German users will be submitted to the U.S. government by the U.S. companies due to the high-intensity, large-scale and almost borderless network monitoring and monitoring operations. This kind of risk, causes Microsoft these has the American background global enterprise to face the data security trust crisis in Germany.
Then, through cooperation with Deutsche Telekom, a joint-stock company separated from the German Federal post and Telecommunications Department, Microsoft implemented an effective so-called “data trustee” mode: at that time, the local user data collected by Microsoft in Germany was only stored in the data center in Germany; the physical access of the data center was under the monitoring of Deutsche Telekom subsidiary; and the visitors were User data is under the control of the data trustee, and Microsoft employees cannot access the data stored there without the trustee’s permission. After 2018, Microsoft has made new adjustments in data storage location to meet the needs of business development.
But generally speaking, the practice of this “trustee model” provides convincing and referential precedents in Germany and China. It also proves that an effective balance can be reached between various different needs, such as enterprise business operation, national security requirements and user data security protection, so as to find the maximum common divisor that takes into account the interests of all parties, and forms an operational one The plan.
For the case of tiktok, the whole development process may be more ups and downs than the above-mentioned Microsoft practice: on July 31, 2020, the U.S. national leader suddenly said that tiktok would be banned from operating in the United States, which aroused the attention of all parties. Before that, of course, cifus had been reviewing tiktok for nearly two years; from July 31 to early September, it focused on the final solution, including business divestiture The scope, selling price, specific object of transaction, etc., all parties launched a tense game.
Now, looking back, on August 28, the Ministry of Commerce and the Ministry of science and technology of China released the revised catalogue of Technologies Prohibited and restricted from exporting in China, which has become a key node in the change of the whole transaction. Based on this catalog, tiktok’s parent company byte hopping can effectively protect its core assets, that is, algorithms. The protection effect achieved after the intervention of the Chinese government, to a certain extent, blocked the possibility of any potential hostile buyer to touch the tiktok core algorithm at a disproportionate price. At the same time, it provided an effective basis for the relatively rational and moderate power of the US side to propose a more constructive solution, and provided an effective basis for the game with “hawks”.

In the final landing agreement, tiktok us is a wholly-owned subsidiary of tiktok, and tiktok is also a wholly-owned subsidiary of byte hopping of Chinese enterprises. Byte skipping has absolute control over tiktok worldwide and tiktok America. This means that although Oracle is introduced as a trusted technology partner, the parent company of tiktok America is a Chinese company managed by Chinese people; that is to say, through ingenious institutional arrangements, the governance structure of tiktok America has not changed substantially. Facts have proved that in dealing with the unreasonable and extortion of some people in the United States, byte beat withstood the pressure and made hard-earned achievements with the effective help provided by various parties including the Chinese government.
Oracle founder Allison meets pompeio
As one of the most attractive transactions in the 2020 US presidential election year, it is obvious that the direct involvement of US national leaders in the transaction has a strong demand for election motivation. One of the key reasons for his early statement is that he can raise the support of voters by making a strong stand on the deal; and the direct impact of normal economic and trade relations between China and the United States on the U.S. economy, especially the U.S. stock market, is a more influential key factor. As for the Hawks like Navarro, it has been repeatedly proved that an excessively tough stance will only lead to “less success than failure”. Just as on June 24, 2020, Navarro’s words led to a 400 point drop in the US stock index. Naturally, the top US leader, who is highly sensitive to this issue, is more concerned about maintaining a good stock market performance after fully reaping the political benefits brought about by a tough stance. On September 3 and September 8, 2020, the two falls of U.S. science and technology stocks have obviously enhanced and strengthened the pragmatic and rational voices of finance minister noumcin, which have an impact on US policy makers, and may speed up the relatively marginalized trend of Navarro and other hawks accustomed to “incompetence and anger” in the decision-making circle to a certain extent.
Although we are still waiting for the final results, we can clearly foresee that the future development will not be smooth. However, it is still reasonable to say cautiously and optimistically that the transaction between tiktok and Oracle has not come easily. It can be regarded as the Chinese government, Chinese enterprises, American enterprises and all the people in the United States who can view Sino US relations with a rational and objective attitude and be pragmatic and pragmatic In a prudent way, on the basis of respecting the other party’s core interest concerns, we should seek feasible methods to resolve anxiety, reduce worry and make joint efforts to achieve landmark results.
Such cooperation is bound to be win-win. For example, tiktok us will continue to maintain its headquarters in the United States, which means creating 20000 jobs, which is obviously a very important benefit for the United States in 2020. The reasonable concern of the United States for national security has been fully and pragmatically responded to, which is a deep integration of globalization and localization, Not only for China and the United States, but also for the world to provide a more sustainable new operation mode of Internet business applications, with benign external effects; through the establishment, improvement and improvement of the effective governance mechanism for the export of key technologies, the Chinese government has demonstrated the ability to protect its own enterprises’ overseas legal interests, and also reflects the positive promotion and maintenance of Sino US economic and trade relations with a pragmatic attitude The firm will to run on the sexual track.
There are also reasons for all parties to look forward to a more positive business and business environment in China and the United States in a broad sense.