Chinese Government Signals Caution on Reported TikTok USA Agreement

Recent comments by Chinese officials have suggested that the TikTok USA sell-off may not yet be a done deal.

Backstory:

• In December it was reported that a TikTok US joint venture deal had been signed, with US firms Oracle and Silver Lake and Abu Dhabi state-owned investment fund MGX to own 45% of the venture.

• The deal is expected to close on January 22.

Bump in the road:

• Music Ally is, however, reporting on recent comments by Chinese officials that suggest the deal may not yet be finalized.

• It quotes a late December report in state-controlled outlet China Daily that says the Chinese government “hopes that relevant parties can reach a solution regarding TikTok that complies with Chinese laws and regulations and achieves a balance of interests.”

• The Chinese government also “urged the US to provide a fair, open, transparent, and non-discriminatory business environment for the continuous and stable operation of Chinese enterprises in the United States.”

What it means:

• This is potentially nothing more than gamesmanship.

• But as Music Ally suggests, TikTok and its owner ByteDance may have approved a US-brokered agreement, but Chinese authorities will still have a say on when and if the sale proceeds.