China Calls for ‘Lawful and Balanced’ TikTok Resolution, Urges Fair US Business Climate
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China hopes a legally sound and equitable resolution can be reached regarding the proposed transfer of TikTok’s US operations to American ownership, while emphasizing that any agreement must adhere to Chinese regulations and adequately represent the interests of all stakeholders. The statement comes as cross-border technology deals face increasing scrutiny and regulatory pressure mounts in the United States.
China’s Commerce Ministry signaled its willingness to engage constructively,but also asserted the need for a level playing field for Chinese companies operating within the US.
Framework Built on Mutual Respect
A spokesperson for the Commerce Ministry, He Yongqian, revealed during a regular briefing that economic and trade teams from both nations had previously established a foundational framework to address concerns surrounding tiktok. This understanding, she explained, followed a recent phone conversation between the leaders of both countries and was predicated on principles of cooperation, mutual respect, and equal consultation to resolve sensitive commercial disputes.
“The understanding was built on cooperation, mutual respect and equal consultation to manage sensitive commercial disputes,” He Yongqian stated.
Call for a Fair Business Habitat
He Yongqian directly urged Washington to align its approach with Beijing’s and to fulfill its commitments by fostering a “fair, open, transparent and nondiscriminatory” business environment for Chinese firms in the US. She underscored that such conditions are vital for ensuring stable operations and promoting the “steady, sound and lasting” advancement of bilateral trade and economic relations.
tiktok Deal and US Legislation
TikTok last week finalized an agreement to sell its American business to a US-led joint venture that includes Oracle, a move designed to safeguard the platform’s future within the country. This transaction followed legislation passed in the United States last year that mandated ByteDance, TikTok’s China-based parent company, to divest the majority of its US assets or face a nationwide ban.
The outcome of this complex negotiation is being closely monitored by global markets, including Türkiye, where policymakers and investors are keenly observing international tech regulation for its broader economic implications. “.
The situation highlights the growing tension between national security concerns and the complexities of globalized technology. China’s response suggests a willingness to negotiate, but also a firm commitment to protecting its companies’ interests and ensuring a fair regulatory landscape.
Why: The US government expressed national security concerns regarding TikTok’s ownership by ByteDance, a Chinese company, fearing potential data access by the Chinese government.
Who: Key players include the Chinese Commerce Ministry (He Yongqian), tiktok/ByteDance, Oracle, the US government, and global observers like those in Türkiye.
What: TikTok reached an agreement to sell its US operations to a US-led joint venture including Oracle to avoid a nationwide ban mandated by US legislation.
how did it end?: The deal finalized last week allows TikTok to continue operating in the US under new ownership, averting a ban but requiring ByteDance to divest a majority of its US assets. The agreement is a result of negotiations spurred by US national security concerns and legislation.
