China takes TikTok-WeChat ding-dong to World Trade Organization, accuses US, India of breaking global rules
(2020/10/06)
- Reference: 1601938988
- News link: https://www.theregister.co.uk/2020/10/05/china_tiktok_wto/
- Source link:
China has accused the United States of breaking international trade rules by threatening to block the TikTok app unless the Chinese biz sells its operations to a US company.
Speaking at a closed door meeting of the World Trade Organization (WTO), a representative of the Chinese government argued that the Trump administration's recent efforts, and [1]a ban in India, “are clearly inconsistent with WTO rules, restrict cross-border trading services and violate the basic principles and objectives of the multilateral trading system,” according to a trade official quoted in [2]media [3]reports .
That same official said that the Chinese rep pointed out that the US had failed to provide any evidence the app – and Middle Kingdom chat app WeChat – represented a threat to national security; the official reason given for blocking the apps in America. The US was engaging in a “clear abuse” of the rules, the Chinese government argued.
The [4]saga of TikTok has remained unchanged for a week: a federal judge [5]stopped the Trump administration’s order that the TikTok and WeChat apps be banned, following petitions from both companies. The US government is planning to appeal that decision, although it’s unclear whether it will push for a quick decision or allow the brouhaha to wind its way through the legal process.
TikTok wins reprieve as judge rules it can stay in American iOS, Android app stores for now [6]READ MORE
TikTok’s parent company ByteDance [7]requested the halt after its effort to do what the Trump Administration has asked – to sell its American operations to US entities – was seemingly approved and then rejected by President Trump during a phone-in to a morning TV show.
Art of the deal
The company proposed separating everything but its China business into a new TikTok Global company, selling 20 per cent of it to US corporations Oracle and Walmart, and then within a year going public, putting control of the company into shareholders’ hands.
While that approach appeared to have gained approval from the US Treasury, it was then dismissed by the President who appeared to believe that Oracle and Walmart should jointly have a controlling stake. It’s not clear Trump understood the details of the deal as he conflated and confused several other details, including future tax payments and an unrelated educational program.
However, since the President appears to hold a veto over the block on TikTok and WeChat as it derived from an executive order, his questioning of the deal led TikTok to apply to the courts for an injunction against the ban a few days before it was due to come into effect.
Justice Carl Nichols in Washington DC granted the injunction though his reasons for doing so are in a sealed document and not public. All parties met last Wednesday to discuss how to move forward; details of which have been limited.
If the US government does insist that a majority stake in TikTok Global be given to a US entity, rather than shareholders based in the US, it seems likely that the deal will fail. Both ByteDance and the Chinese government have made it plain that they will not allow the company’s key assets – primarily, its algorithms for selecting videos to highlight – to be moved outside China. China has passed a new law that would require any company making such a sell to gain the government’s approval first.
In the meantime, the TikTok saga has become another stick to hit the US with in the world of global diplomacy and international organizations. ®
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[1] https://www.theregister.com/2020/06/29/india_bans_chinese_apps/
[2] https://www.reuters.com/article/usa-tiktok-ban-wto/china-says-u-s-tiktok-wechat-bans-break-wto-rules-idUSKBN26Q2LL
[3] https://www.scmp.com/economy/china-economy/article/3104239/china-says-us-and-indian-bans-tiktok-wechat-broke-wto-rules
[4] https://www.theregister.com/2020/09/21/tiktok_oracle_walmart/
[5] https://www.theregister.com/2020/09/28/tiktok_reprieve/
[6] https://www.theregister.com/2020/09/28/tiktok_reprieve/
[7] https://www.theregister.com/2020/09/24/tiktok_files_injunction/
[8] https://whitepapers.theregister.com/
Speaking at a closed door meeting of the World Trade Organization (WTO), a representative of the Chinese government argued that the Trump administration's recent efforts, and [1]a ban in India, “are clearly inconsistent with WTO rules, restrict cross-border trading services and violate the basic principles and objectives of the multilateral trading system,” according to a trade official quoted in [2]media [3]reports .
That same official said that the Chinese rep pointed out that the US had failed to provide any evidence the app – and Middle Kingdom chat app WeChat – represented a threat to national security; the official reason given for blocking the apps in America. The US was engaging in a “clear abuse” of the rules, the Chinese government argued.
The [4]saga of TikTok has remained unchanged for a week: a federal judge [5]stopped the Trump administration’s order that the TikTok and WeChat apps be banned, following petitions from both companies. The US government is planning to appeal that decision, although it’s unclear whether it will push for a quick decision or allow the brouhaha to wind its way through the legal process.
TikTok wins reprieve as judge rules it can stay in American iOS, Android app stores for now [6]READ MORE
TikTok’s parent company ByteDance [7]requested the halt after its effort to do what the Trump Administration has asked – to sell its American operations to US entities – was seemingly approved and then rejected by President Trump during a phone-in to a morning TV show.
Art of the deal
The company proposed separating everything but its China business into a new TikTok Global company, selling 20 per cent of it to US corporations Oracle and Walmart, and then within a year going public, putting control of the company into shareholders’ hands.
While that approach appeared to have gained approval from the US Treasury, it was then dismissed by the President who appeared to believe that Oracle and Walmart should jointly have a controlling stake. It’s not clear Trump understood the details of the deal as he conflated and confused several other details, including future tax payments and an unrelated educational program.
However, since the President appears to hold a veto over the block on TikTok and WeChat as it derived from an executive order, his questioning of the deal led TikTok to apply to the courts for an injunction against the ban a few days before it was due to come into effect.
Justice Carl Nichols in Washington DC granted the injunction though his reasons for doing so are in a sealed document and not public. All parties met last Wednesday to discuss how to move forward; details of which have been limited.
If the US government does insist that a majority stake in TikTok Global be given to a US entity, rather than shareholders based in the US, it seems likely that the deal will fail. Both ByteDance and the Chinese government have made it plain that they will not allow the company’s key assets – primarily, its algorithms for selecting videos to highlight – to be moved outside China. China has passed a new law that would require any company making such a sell to gain the government’s approval first.
In the meantime, the TikTok saga has become another stick to hit the US with in the world of global diplomacy and international organizations. ®
Get our [8]Tech Resources
[1] https://www.theregister.com/2020/06/29/india_bans_chinese_apps/
[2] https://www.reuters.com/article/usa-tiktok-ban-wto/china-says-u-s-tiktok-wechat-bans-break-wto-rules-idUSKBN26Q2LL
[3] https://www.scmp.com/economy/china-economy/article/3104239/china-says-us-and-indian-bans-tiktok-wechat-broke-wto-rules
[4] https://www.theregister.com/2020/09/21/tiktok_oracle_walmart/
[5] https://www.theregister.com/2020/09/28/tiktok_reprieve/
[6] https://www.theregister.com/2020/09/28/tiktok_reprieve/
[7] https://www.theregister.com/2020/09/24/tiktok_files_injunction/
[8] https://whitepapers.theregister.com/
Throatwarbler Mangrove
"Who's paying the bill this education?"
The American citizenry at the very least.
A Storm in a China Tea-Cup
Claverhouse
Fact is, the American Peeple loathe non-Americans and the only way to win their hearts and minds is to beat up on those un-American scoundrels.
Trump's stealing of TikTok is very minor in any view --- and a lot nicer than Bushobama's mass-murder sprees --- but it may be necessitous to clinch his undoubted Election victory. And China is not a paragon either.
Re: A Storm in a China Tea-Cup
Snake
Making general declarative about a people that you seemingly do not know personally, are you? So the entire population of the United States "loathe" non-Americans, hmm?
Interesting. I'll need to inform the massive crowds that gather at any visit from a British royal that we, in actuality, never really liked you.
WTO? WTF?
Anonymous Coward
WTF? China is suddenly wanting others to obey International bodies like the WTO? Now that's funny!
Maybe if China were to obey the international tribunal in The Hague ruling on it's fake claims to own the South China sea...
Re: WTO? WTF?
Mark Exclamation
Exactly. You beat me to it. China is only interested in international laws when they benefit them.
"Hint: He’s in hospital"
I see he's now claiming he's really been to school to learn about Covid. I keep quoting "experience is a dear teacher but there are those who will learn by no other". Who's paying the bill this education?