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China Says It Won't Approve TikTok Sale, Calls It 'Extortion' (techcrunch.com) 174

The September 20 deadline for a purported TikTok sale has already passed, but the parties involved have yet to settle terms on the deal. ByteDance and TikTok's bidders Oracle and Walmart presented conflicting messages on the future ownership of the app, confusing investors and users. Meanwhile, Beijing's discontent with the TikTok sale is increasingly obvious. From a report: China has no reason to approve the "dirty" and "unfair" deal that allows Oracle and Walmart to effectively take over TikTok based on "bullying and extortion," slammed an editorial published Wednesday in China Daily, an official English-language newspaper of the Chinese Communist Party. The editorial argued that TikTok's success -- a projected revenue of about a billion dollars by the end of 2020 -- "has apparently made Washington feel uneasy" and prompted the U.S. to use "national security as the pretext to ban the short video sharing app." The official message might stir mixed feelings within ByteDance, which has along the way tried to prove its disassociation from the Chinese authority, a precondition for the companies' products to operate freely in Western countries.
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China Says It Won't Approve TikTok Sale, Calls It 'Extortion'

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  • by oic0 ( 1864384 ) on Wednesday September 23, 2020 @03:09PM (#60537274)
    Regardless of the political concerns, it is extortion. China deserves that and worse, but that doesn't change what it is.
    • Le mot juste if there ever was.

    • by Luckyo ( 1726890 ) on Wednesday September 23, 2020 @03:20PM (#60537344)

      Problem is, by this logic all Chinese corporate events are extortion by Chinese, as they require majority ownership by Chinese in any company that operates in China.

      • by ObliviousGnat ( 6346278 ) on Wednesday September 23, 2020 @03:40PM (#60537440)

        Let's say you're right. Does that give us justification to stoop to their level?

        • by Jarwulf ( 530523 )
          Found the 50 cent brigader.
        • by farble1670 ( 803356 ) on Wednesday September 23, 2020 @04:08PM (#60537590)

          Does that give us justification to stoop to their level?

          Yes.

          If someone's punching you in the face, you can politely ask them to stop. You can ask them a second time, and a third. At some point you need to "stoop to their level" and punch back.

          • Re: (Score:3, Insightful)

            And if someone's punching you in the face, the reason you can't walk away is because...?

            • And if someone's punching you in the face, the reason you can't walk away is because...?

              is because they keep following you and punching you in the face. we have tried the walk away bit..It didn't work they keep following and punching

          • by vyvepe ( 809573 ) on Wednesday September 23, 2020 @04:57PM (#60537806)

            Simulations indicate that you should do it every third time on average to achieve optimal behaviour in a group.

            Based on that you should behave like this: 2 of 3 punches should be ignored, 1 of 3 punches should be returned back ... on average.

          • by Cyberax ( 705495 ) on Wednesday September 23, 2020 @05:25PM (#60537934)

            If someone's punching you in the face, you can politely ask them to stop.

            You can also call police and let the law deal with the assailant. Your recipe of "hitting back" usually leads to domestic violence ending up with someone being dead or gravely injured.

            This is what is happening right now with the US. I remember reading in 80-s era books about how the US is governed by law, and not whims of a (socialistic) dictator. The US had real moral authority. Well, not anymore.

            • You can also call police and let the law deal with the assailant.

              Alas, that only works when the assailant is stupid. Preferably way more stupid than the police.

              I learned very early in High School that I should be VERY careful what trust I put in authority figures. Not all bullies are suffering from cognitive disorders and low self-esteem.

            • ... the US is governed by law, and not whims of a (socialistic) dictator.

              I think any sensible analysis of how China is ruled would term it totalitarian, and not socialistic. I do not care if the Chinese rulers call their ruling party "Communist". I am currently reading a Wikipedia article on Vladimir Lenin. Rather depressing reading, I have to say.

              I am not entirely sure what socialism actually means. Being nice to the workers? Who are these workers, anyway? My boss works, so therefore he is a worker. He has got pots of money, and runs a nice swish Tesla. But he is actually an in

          • by youngone ( 975102 ) on Wednesday September 23, 2020 @05:31PM (#60537954)
            The massive western multinational corporation I work for is not being "punched in the face" by China, but 25 years ago when we wanted to take advantage of their cheap, cheap labour force, and get access to a whole new consumer market, China allowed it, providing we played by their rules.
        • by AleRunner ( 4556245 ) on Wednesday September 23, 2020 @04:15PM (#60537622)

          Let's say you're right. Does that give us justification to stoop to their level?

          Actually it does, when you understand their level clearly. All business transactions take place in a societal and state created cocoon. If you sign a contract then, in a normal situation in a "normal" country you have the expectation that the other side will follow that. If they fail to then you can go to courts and expect the state to intervene to ensure your private contract is enforced fairly.

          The specific level that China stoops to is that the needs of the state are allowed to override those legal protections. If your company produces something in China that China decides is strategic then their companies will be allowed to break Chinese law and copy your system [bbc.com] eventually becoming a major competitor on the back of that breach of law. If China decides, your employees may be arrested and used as bargaining chips [bbc.com] to protect the employees of strategic Chinese companies that are under investigation for breaking the law.

          This means that a Chinese company is not just a company. It is in part integrated with a criminal Oligarchy. In order for there to be a "level playing field" which allows non Chinese businesses to work with Chinese businesses in an acceptable way, there needs to be very close scrutiny

          Now, you might argue that the US patriot act represents a similar breach of the duties of the rule of law. You might argue that Trump is choosing to enforce these laws in a very strange way, missing important companies (Zoom? / Ali Baba / all the IP camera manufacturers etc.) whilst picking on a company that just happens to have been used by young people to offend him. You might argue that Trump should consider enforcing such rules against companies working with Russia which has actually been caught attacking US elections recently. All these could be valid argument, but not the argument that he should never interfere with Chinese companies ownership and deployment in the USA. Not as long as Chinese companies are part of a system which is inherently law breaking.

          • by peragrin ( 659227 ) on Wednesday September 23, 2020 @04:44PM (#60537764)

            Point of order it isn't a criminal oligarchy if it is agreed to by the people. It is a government oligarchy. China is soverign and can run it's population and laws how it wants to.

            North korea is sovereign.

            That limits what outside people can do. The Chinese people see the differences but then those that can see are both watched closer, and controlled tighter.

            Trump wants the usa to make a president for life in the Chinese model. You may not think it will happen but people keep thinking they can control him and fail. Every military person he has had has left. They thought they could control him instead they are helping push his madness out.

            • by AleRunner ( 4556245 ) on Wednesday September 23, 2020 @05:18PM (#60537906)

              Point of order it isn't a criminal oligarchy if it is agreed to by the people.

              This is not sufficient. There are fundamental rules of human rights, breaching which is illegal no matter what anyone agrees to. Arresting people without due process, as is happening to the Canadian businessmen and as is happening to the Uyghurs is criminal. As is failing to have an effective system of investigation for when your policemen breach the law, but since both China and the US indulge in that we'll leave it aside for the moment.

              Trump wants the usa to make a president for life in the Chinese model. You may not think it will happen but people keep thinking they can control him and fail. Every military person he has had has left. They thought they could control him instead they are helping push his madness out.

              Then, if you are an American citizen it's really important that a) you understand why people vote for Trump, and why standing up to China is important to them and b) you listen and then c) you find clear ways to explain what he stands for to people that are on the edge and liable to turn against him. I really think he can destroy everything your country stands for, but standing up for the Chinese government is not the hill to die on. Instead focus on why he has allowed a greater proportion of Americans to die of Covid-19 than almost anywhere else. Why were the cases pushed down for a short time as tests were cut but are now going up again [covidtracking.com]. He has failed your contry disastrously and will even more.

            • The Chinese and North Koreans have "agreed" to their forms of government? Whoa.

          • by AmiMoJo ( 196126 ) on Wednesday September 23, 2020 @05:04PM (#60537830) Homepage Journal

            Trump is going way beyond China's level. Trying to destroy Huawei is like China trying to destroy Apple.

            Which is why China can't allow this. It would open the door to much worse things.

            • Trump is going way beyond China's level. Trying to destroy Huawei is like China trying to destroy Apple.

              Which is why China can't allow this. It would open the door to much worse things.

              Can't disagree. Why do companies like Nortel and Lucent not exist any more? This is entirely coincident with China forcing it's companies into the global telecoms market. I think China understands better than anyone what this battle is about.

              • by AmiMoJo ( 196126 )

                Lucent was sold to the French. It's problems were entirely its own making, nothing to do with China.

                Nortel was hacked for decades before Huawei came along and ate their lunch. What screwed them was not so much the competition from more competent companies but their own financial irregularities and mismanagement.

                • I don't disagree that they were both broken companies. However, with companies of that size and history, if they mess up like Nortel, the usual thing is to restructure the debt, change the management and reinstate them as working entities still employing people. The reason that wasn't an option is simply that companies like ZTE and Huawei were coming to eat their lunch. Everybody could see that the market needed to lose some competitors and so nobody was willing to invest in reanimating the train wrecks si

            • by sfcat ( 872532 )

              Trump is going way beyond China's level. Trying to destroy Huawei is like China trying to destroy Apple.

              Which is why China can't allow this. It would open the door to much worse things.

              So perhaps that's not the right way to look at this. Tiktok in the US is dead. Either Bytedance can get something for it (from Oracle), or they get nothing. The AI part is nonsense. We all know it. Vine had the same stuff years ago. And a US competitor will appear about 1 second after FB ensure access to the necessary APIs to someone. This doesn't really open anything up as its already done. Its just how much of their nose they want to take off to spite their face. Just like it was sorta done to Go

              • by AmiMoJo ( 196126 )

                So perhaps that's not the right way to look at this. Tiktok in the US is dead. Either Bytedance can get something for it (from Oracle), or they get nothing. The AI part is nonsense. We all know it. Vine had the same stuff years ago. And a US competitor will appear about 1 second after FB ensure access to the necessary APIs to someone. This doesn't really open anything up as its already done. Its just how much of their nose they want to take off to spite their face. Just like it was sorta done to Google in China (lack of access to a market). So Bytedance can get something for Tiktok or they can get nothing. Which do you think is better for China? Just wondering...

                So perhaps that's not the right way to look at this. iPhone in China is dead. Either Apple can get something for it (from Huawei), or they get nothing.

                Yeah I don't think China is going to see it that way.

              • So Bytedance can get something for Tiktok or they can get nothing. Which do you think is better for China? Just wondering...

                The nothing is better.

                China needs to set a precedent. Or it will just keep on happening.

                Why fork your code and give it to a competitor when you can keep your monopoly?
                TikTok is still alive in every other country. How many other countries would switch to a non Chinese version if given the chance? Wouldn't you? Why help set up your strongest competitor? It's MBA next quarter thinking (stupid, short term profit and destroying your company's future).

      • by the_B0fh ( 208483 ) on Wednesday September 23, 2020 @04:00PM (#60537538) Homepage
        No. Per one of the commenters (Godfree Roberts), there was a clear set of rules going in to china. If you want to go in, you follow the rules, and that's it. If you don't want to play by the rules, you are welcome to leave.

        Meanwhile, what US is saying waving FUD all over the place, shows no evidence, and using that, forcing the sale. *THAT* is extortion.

        There is some confusion here about the status of American platforms in China, so let's review the events that led up to them.

        Kai-Fu Lee, who was head of Google China before Google left China in 2010, compared the treatment of Google in China with that of TikTok in the U.S, "When Google exited China, I had already left the company. However, the environment and regulations were very clear:Foreign internet companies that want to enter the Chinese market need to comply with laws and regulations, which are described very clearly (joint venture, ICP certificate, servers in China, content, etc.). Those who are willing to observe these laws can apply to enter. Google entered in just this way.

        When Google later felt unwilling to observe these laws, it decided to leave.

        The U.S. did not lay out what TikTok would need to do to continue operating, and never gave any evidence whatsoever to back up its accusations about the company. Forcing the company’s sale, giving only 45 days to do so, and charging a middleman’s fee — these things are not only incomparable to Google, but inconceivable".

        • by Luckyo ( 1726890 )

          >there was a clear set of rules going in to china

          I have no idea who "this one user" is, but if you even remotely believe in the quote, I have a bridge on the Moon to sell you. Good price. Consistent rules of ownership.

      • by darkmeridian ( 119044 ) <<moc.liamg> <ta> <gnauhc.mailliw>> on Wednesday September 23, 2020 @04:07PM (#60537584) Homepage

        China makes it very clear going in that they're going to rip you off. They're going to insist on a joint-venture with a domestic firm. They're going to insist on technology transfers. And they're going to just steal your fucking IP. All of this is made absolutely clear upfront, and Western firms still do it because they only care about the next quarter.

        America has put itself out there as a free, capitalist country, so this is an about-face.

        • by Luckyo ( 1726890 )

          >And they're going to just steal your fucking IP. All of this is made absolutely clear upfront

          No amount of postmodern word twisting is going to make this phrase actually function as a sane statement.

        • China makes it very clear going in that they're going to rip you off. They're going to insist on a joint-venture with a domestic firm. They're going to insist on technology transfers. And they're going to just steal your fucking IP. All of this is made absolutely clear upfront, and Western firms still do it because they only care about the next quarter.

          What I don't get is why China was allowed to become a WTO member with these bullshit practices in place. It is basically extortion and a form of protectionism.

          • Because China's growth was a counter to USSR and closely aligned India. There is simple fact here - USA has a system that values making money above everything else starting from selling guns and destabilizing governments and going from there. All decisions follow from that maxim.

      • by AmiMoJo ( 196126 ) on Wednesday September 23, 2020 @05:00PM (#60537816) Homepage Journal

        That's not true though. There are wholly foreign owned companies in China.

      • You do realise that quite a lot of commerce and services in the US is restricted on the same basis, right? Sure, not anywhere near like it is in other countries, but the US isn't exactly innocent in this area.

      • And yes they are.
      • Not true, and even when it was, it was a condition of entry to the market for every foreign enterprise, not just punishment for being successful.

      • Problem is, by this logic all Chinese corporate events are extortion by Chinese, as they require majority ownership by Chinese in any company that operates in China.

        Extortion, what extortion, you mean the protection partnerships?

      • by rtb61 ( 674572 )

        US law meaningless. Quite clearly the public message, as a foreign corporation of you outcompete American corporations, you will be crushed, all the profit must be American, the labour that can all be foreign but all those profits must end up in the tax haven bank accounts of American corporations, not paying a cent in tax.

        It was just a geo-political attack which will see American corporations, ALL American corporations targeted in China in turn. Completely idiotic and pointless, typical of the kind of blu

    • by Powercntrl ( 458442 ) on Wednesday September 23, 2020 @03:27PM (#60537370) Homepage

      China deserves that and worse

      And by behaving like them, we've just lent further legitimacy to their actions. If the land of the free does it, how bad can we possibly be?

      Guess that’s why they say “an eye for an eye makes the world blind.”

      (Also, now I’ve got that Lorax song stuck in my head again...)

    • Exactly, China can whine about extortion all they want. Is Twitter allowed in China? Is Facebook? Why should the US allow TikTok?

      In manufacturing it's just as bad. Try to sell a product made outside of China within China. This is not free trade.
      • They have created a very straight set of rules regarding what's allowed and what's not. The US government on the other hand, starts chasing and vilifying Chinese companies with baseless accusations. We all have yet to see a credible proof of "backdoor" in Huawei network equipment.

        Let's get to the bottom of it. This whole campaign of very loud public bashing of some Chinese companies is simply part of Trump's "trade war" electoral strategy.

        • I think it's good that the US is finally doing something about the protectionist policies in China. However, I agree that the leadership in the U.S. does not seem to have a coherent set of objectives. Without objectives, their can't be progress.
        • by gtall ( 79522 )

          The U.S. policy is very clear and transparent. All China need do is make a substantial contribution to either the alleged president's bank account or his re-election campaign.

      • All those companies are allowed in and are in China (not sure about twitter). Some of their products aren't because they refuse to follow Chinese law. They are welcome back, should they decide they're not above the law.

    • by Kohath ( 38547 )

      Yeah, it sucks when your companies are forced into joint ventures in order to have access to a large market, doesn't it?

    • indeed. I came here to say this.
      • Re: (Score:2, Interesting)

        by aldousd666 ( 640240 )
        I meant "indeed" to the "it is" not "they deserve this" They definitely do NOT deserve this and I'm scared to even think that our government acts like this.
    • I agree. At least China just bans Facebook, YouTube and free speech outright. The honesty is refreshing.
    • Regardless of the political concerns, it is extortion. China deserves that and worse, but that doesn't change what it is.

      Yeah, exactly. What would Americans say if they effectively tried to nationalize Apple or Google's (they're evil enough) China operations.

  • by Ogive17 ( 691899 ) on Wednesday September 23, 2020 @03:09PM (#60537276)
    Instead of an outright sale, make TikTok US become a "partnership" with an American company owning 51% of the company.
    • If this is how it is going to be, it has to be set in rules (laws). But bashing a random Chinese company and forcing a sell off is utter BS.

  • That's all the evidence I need that TikTok is an asset of the CCPs intelligence apparatus.
    • Re: (Score:3, Insightful)

      by Anonymous Coward

      That's all the evidence I need that TikTok is an asset of the CCPs intelligence apparatus.

      So explain to us, what exactly what is China gaining in terms of intelligence from the gigantic pile cringe worthy video clips that is TikTok? And please do try to come up with a conspiracy that does not also involve George Soros the 'Deep State' and Jews.

      • No need to resort to conspiracy theories - US intelligence organizations have been warning for over a decade that Chinese hardware and software available on the free market is leaking data. That's a concern to our military organizations, as military and other essential personnel can be more easily profiled from the extra data. Common permissions from smart devices could leak locations and associations. In some cases, this had led to people being blackmailed by foreign governments. Location data could expose

        • I have yet to see a credible proof that Huawei equipment has backdoors or calls home to spy on customers.

          • You're looking for some nefarious back door - the data is going out the front door. It's just that the military values privacy more than the average citizen data, and any foreign entity that's not approved by the DoD is considered potentially a malicious actor. It's as simple as clicking 'Ok' when the Huawei phone asks for permissions to contact history or location data. You're absolutely right, there's no real smoking gun here or international treaty of domestic privacy law being broken. It's just personal
        • Be that as it may with Huawei hardware. However, TikTok is not hardware. It's a freaking phone app that is sandboxed and can't do anything unusual.
        • by ghoul ( 157158 )
          US intelligence is like govt employees everywhere. They like to work the least amount possible. While it was Cisco hardware they didnt really have to work hard as the backdoors came built in with access for the NSA. Huawei complicates that as they dont have NSA approved node packages integrated into the hardware. Hence the fight against spread of Huawei hardware. Whether the Chinese have backdoors in Huawei or not is mostly secondary, the issue is Huawei does not have NSA backdoors built in.
      • by Sloppy ( 14984 )

        Here's an idea: you load their code onto your computer and try to figure it out.

        What's the matter, too chicken to install their app? Well, guess what: so are the people who think it might be part of their intelligence apparatus.

      • TikTok has been caught red handed with the camera and microphone running 24x7. https://www.thesun.co.uk/tech/... [thesun.co.uk]
      • by ghoul ( 157158 )
        The idiots posting cringeworthy videos today will grow up over the next decade and have jobs in positions of power. The cringeworthy videos are great Kompromat to hld over them. Of course you dont really need to own Tiktok to do that. Just create an offline backup of all the cringeworthy videos.
    • How the fuck is that comment worthy of a +5 insightful?!
    • by GeekBoy ( 10877 )

      Yup, they are just pissed they are losing a very broad and valuable attack vector.

    • Then you're a fool who has learned nothing.

  • Well ... (Score:4, Informative)

    by fahrbot-bot ( 874524 ) on Wednesday September 23, 2020 @03:28PM (#60537372)

    "has apparently made Washington feel uneasy" and prompted the U.S. to use "national security as the pretext to ban the short video sharing app."

    At least has annoyed *someone* in Washington 'cause (apparently) people have made disparaging videos about him and (reportedly) coordinated an effort that tanked attendance at one of his rallies by reserving a LOT of tickets and then not going, both on the app -- or so I've read/heard.

    • At least has annoyed *someone* in Washington 'cause (apparently) people have made disparaging videos about him and (reportedly) coordinated an effort that tanked attendance at one of his rallies by reserving a LOT of tickets and then not going, both on the app -- or so I've read/heard.

      No.... that can't be true... \sarcasm

  • ... humanity exterminating itself in a war started by as dispute over something called "Tik tok"
  • It Only Makes Sense (Score:5, Informative)

    by organgtool ( 966989 ) on Wednesday September 23, 2020 @03:51PM (#60537494)
    Why would China approve the sale of the U.S. portion of one of their companies when:

    1. The only reason for the sale is due to the insistence of a foreign President who might not even be re-elected in several weeks
    2. It's not even clear that a U.S. President has the power to enforce such a demand (have the issue taken to court to buy some more time)
    3. If it's determined that Trump can block a particular app without official sanctions from Congress, then troll him by changing the name of the app to something like "ClikClok" since the executive order specifically bans an app called TikTok

    This deal is also terrible for Americans as well. The whole thing is supposed to be based on "national security" but there are many other apps that were created by Chinese companies or U.S. companies who receive heavy investments from China, so what makes TikTok so special? Is it because it was used to troll Trump at one of his rallies? If so, then this move would ensure that the data of users who do things that he doesn't approve will remain firmly within his reach. Any future stunts using that platform could be investigated by the TLAs since Trump is the executive over all of those agencies. If those agencies decided to obey the Constitution and refuse Trump's demand, then a quick call from Trump to one of his biggest supporters (Larry Ellison) would be all it takes to get that data since it would be hosted using Oracle's resources.

    This really is one of the most unusual and chilling moves I've ever seen a U.S. president attempt to make. Trump is attempting a nationwide ban on a couple of apps (WeChat and TikTok) because he claims that they're security risks but he hasn't shown any proof that is the case. Even if you don't think that proof should be required, then I think we could all agree that Chinese hardware is a much greater risk, so why hasn't that been banned?

    One of the things that annoys me the most is that if it was a Democrat doing this, the conservative networks would all be proclaiming that liberals were performing a "government takeover of smartphone marketplaces" but somehow this is alright because it's a Republican and the targeted apps are from China. If you're still alright with this, I'll leave you two things to think about:

    1. Slippery slope
    2. If we do allow this, what apps will be banned once a Democrat occupies the White House?
    • I'd guess Trump would say the rally fiasco is the proof. Making the US President look like a fool damages national security. Perhaps he himself should be banned.

      • by ghoul ( 157158 )
        The founding fathers wanted a King when they wrote the Constitution just an elected and limited term one. So one could argue Lese Majeste as a crime.
  • It's not extortion (Score:4, Insightful)

    by rsilvergun ( 571051 ) on Wednesday September 23, 2020 @04:15PM (#60537624)
    I point this out on every Tik Tok thread because it bears repeating [duckduckgo.com] (getting that joke out of the way now).

    This is about disrupting youth political action & organization. A bunch of kids on Tik Tok made a fool of Trump at his first big post COVID rally by ordering thousands of tickets and not going. What got their attention wasn't Trump being made a fool but _how_ he was made a fool.

    They did the same thing with Occupy Wall Street and with Nixon's Drug War [youtu.be] before that. Whenever you find young people organizing politically you'll find the GOP there to break it up before they start voting. It's part of a long, broad strategy that has it's roots in the losses they took post Civil Rights movement. The right wing adapted their tactics, the left wing did not.
    • That is what got Trump's attention. Extortion is the result of this attention and Trump was unpleasantly surprised that he wouldn't get a cut of the sale.

    • I point this out on every Tik Tok thread because it bears repeating [duckduckgo.com] (getting that joke out of the way now).

      Wrong bear joke. On a TikTok thread you're supposed to point out that Xi Jinping looks like Winnie-The-Pooh.

  • It is just like when GM, and others built factories in CHina and then China told them RETROACTIVELY, you must hand over all of your patents to us, or we shut down your factories here. That was extortion. Sadly, Obama, Merkel and the rest of the west did nothing about it.

    For security reasons, America can simply block from tik-tok's IP(s). And yes, we have the ability to do that.
  • Ban the application and call it done.

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