ByteDance applies for government approval of technology export... Likely to affect TikTok restructuring negotiations

[Image source=Yonhap News]

[Asia Economy Reporter Seulgina Jo] ByteDance, the parent company of TikTok, has applied for a technology export license from the Chinese government.

According to Chinese media on the 24th, ByteDance stated in a press release that "based on the regulations of the Chinese export control technology list, we have already submitted a license application to the Beijing Municipal Bureau of Commerce" and "we are awaiting approval." However, the specific technologies subject to the application were not disclosed. It is expected to be related to the ongoing TikTok restructuring negotiations in the United States, but this has not been confirmed.

The Chinese government also confirmed that it has received the technology export license application from ByteDance. Gao Feng, spokesperson for the Ministry of Commerce, said at a regular briefing that "the Beijing Municipal Bureau of Commerce has received the technology export license application submitted by ByteDance" and "it will be handled in accordance with relevant regulations and procedures based on the law."

Currently, ByteDance is negotiating the restructuring of TikTok in the United States, including the partial sale of shares to Oracle and Walmart. According to the agreement, to alleviate the U.S. government's concerns that the personal information of American TikTok users could be transferred to the Chinese Communist Party, Oracle will manage the personal information and data of U.S. users. Additionally, TikTok Global will be listed on the U.S. stock market.

However, negotiations have been difficult due to conflicting positions between ByteDance and the U.S. government over governance issues. Amid this, the restructuring negotiations are expected to become more complicated depending on China's export license decision. Chinese state media are arguing that the TikTok sale contract should be disallowed.

The Global Times, the English edition of the state-run newspaper Huanqiu Shibao, published an editorial on the 22nd titled "Say 'No' to the U.S. Robbery of TikTok."