China said on Wednesday that specific commercial arrangements regarding TikTok must comply with Chinese laws, and this includes technology exports, which must be approved by the Chinese government in accordance with the law.
The comment was made on Wednesday by the Commerce Ministry in response to the United States government's latest move to extend short-video app TikTok's sell-by deadline for another 75 days.
Experts said China's stance indicates that it will not yield to U.S. pressure, including forced administrative intervention in companies' fair and free business operations, and it will not accept the use of such actions as bargaining chips in tariff negotiations or as a means of suppressing Chinese companies.
According to an online statement issued by the Ministry of Commerce, China always respects and protects the legitimate rights and interests of businesses and strives to create a market-oriented, law-based and internationalized top-tier business environment.
Bai Ming, a researcher at the Chinese Academy of International Trade and Economic Cooperation in Beijing, said the U.S. is resorting to political maneuvers to threaten TikTok's Chinese owner to sell a significant stake, and to contain China's rise as a technological power.
He highlighted that a forced stake sell-off not only violates the principle of market economy and fair competition, but also would affect the normal business activities of Chinese companies in the U.S. and ultimately harm the rights of U.S. consumers, given that TikTok has gained wide popularity among the country's young people.
Zhou Mi, a senior researcher at the Chinese Academy of International Trade and Economic Cooperation, said the export of algorithms and core technologies should meet compliance requirements of Chinese authorities and comply with Chinese laws and regulations, which is definitely reasonable and necessary for Chinese enterprises to operate in overseas markets.
ByteDance, the parent company of TikTok, said in a statement on Saturday that it is still in discussions with the U.S. government regarding plans to keep the app operational in the country, reiterating that no agreement has been finalized. The company said there are still key matters to be resolved, emphasizing that "any agreement will be subject to approval under Chinese laws".
In April last year then-U.S. president Joe Biden signed a law that gave ByteDance 270 days to sell TikTok to a non-Chinese enterprise. President Donald Trump, who took office on Jan 20, signed an executive order to delay the TikTok ban by 75 days. The first extension expired on April 5.
Zhu Keli, founding director of the China Institute of New Economy, said that TikTok still faces several challenges in the U.S..
"How to maintain user growth amid fierce market competition is an urgent problem. In addition, the U.S. government may continue to leverage political power to contain it, which further increases its uncertainties and operational difficulties," he said.
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