China's New AI Trade Regulations May Hinder TikTok Sale Opportunities

Home AI News China's New AI Trade Regulations May Hinder TikTok Sale Opportunities

Updated on November 9 2024

TikTok's efforts to sell itself and avoid a potential ban in the U.S. are facing new challenges. The Wall Street Journal reports that China has introduced restrictions on AI technology exports that could impact TikTok's operations. These new regulations prohibit the export of technologies such as content recommendations, text analysis, and voice recognition without a license—technologies that TikTok utilizes.

Additionally, the Chinese government has issued a pointed warning to ByteDance, TikTok's parent company. Government advisor Cui Fan urged ByteDance to "seriously and cautiously" reconsider its sale negotiations for TikTok. Even if ByteDance divests its stake in TikTok, potential technology transfers could still infringe on the new regulations.

According to China's Ministry of Commerce, these export list updates were overdue, having remained unchanged since 2008. Officials emphasized that the updates were essential due to rapid technological advances and increased competition in China.

Neither ByteDance nor the Ministry of Commerce has commented on the new regulations. This development intensifies the ongoing tensions between China and the U.S. Both nations are engaged in a trade conflict, with the U.S. already imposing restrictions on companies like Huawei and ZTE over security concerns. The pressure on TikTok to separate from ByteDance appears to be a continuation of this trend, leading to China's response with stricter export controls that could force the U.S. to reconsider its stance on access to Chinese technology.

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