Why Tik tok cant sell American business

 Why Tik tok cant sell American business

The U.S. trump government forced Tik tok to sell its U.S. business, causing huge market attention, which is still in fermentation.

Byte dance in the whirlpool seems to have experienced some inner struggle: at the beginning, they were surprised, hesitant, and wanted to give up: under the pressure and suppression of the past period of time, enterprises probably felt that the business in the United States was unsustainable after all, so it was better to find a high price to sell and cash out. The buyer will give a high price, and byte hopping can cash out their business and technological innovation and share in an impossible market in real time, so as to get rich business returns.

They may also have the fluke idea that technological innovation is continuous. Leave green hills, even if there is no firewood. You have acquired my platform, and I have cashed in. In the future, we can develop new platforms and create new tracks. After all, failed acquisitions also exist in the Internet. In early 1999, Yahoo! Acquired GeoCities, an online virtual community, with $3.57 billion worth of stock. At that time, it was the third most popular website in the world (and the author also had a webpage on it at that time). The result of this acquisition was value Description: Yahoo destroyed GeoCities. In 2011, news corporation bought MySpace for 580 million dollars, and soon MySpace was in trouble. News Corp. reselled the platform for $35 million in 2011. Now MySpace has disappeared from the mainstream view. Acquisitions do not necessarily create value, but destroy value.

Under the huge political pressure of the game between big powers, the cognition and understanding of the founders, management and shareholders of enterprises who are engaged in business and are used to seeking business development in a stable environment may have exceeded the recognition and understanding of the founders, management and shareholders of enterprises. In such a bad external environment, they do have the incentive to cash out: the economic return of selling is certain, but the prospect of not selling is uncertain. Companies probably dont want to put themselves in the position of sitting with a group of political commentators to analyze the possibility of Trumps re-election and the attitude of China policy after Bidens succession. These things are beyond the understanding of entrepreneurs, and entrepreneurs will think that if there is such uncertainty, then we should not enter such a market from the beginning. We should not put ourselves in front of such a choice.

In the meantime, it is estimated that there are various middlemen who claim to be able to help enterprises negotiate a good deal. Companies such as Microsoft, which maintain good relations with China all year round, also step forward and strive to create a multi win situation. At this point, I think its understandable that entrepreneurs have the idea of quitting. To be honest, how many people would like to be put off before such a difficult choice. How many people can resist temptation under pressure.

But in June 2020, the fate of Tik tok is not just a byte beating, it has become an inevitable part of the politics of great powers. The founders, shareholders and management should see that Tik tok has been inevitably involved in the vortex center. Its choice will not only affect the fate of this platform, the fate of byte hopping, but also the fate of Chinese enterprises and the development of the game between China and the United States. To a large extent, it is even bound up with the National Games: it is not only the result of the National Games, but also affects the National Games. As a Chinese enterprise, it is a part of our national transportation.

Therefore, the choice of byte skipping has a wide range of political implications. To change the concept that entrepreneurs and economic observers are more familiar with, the decision of byte skipping has externalities: on the surface, its decision is an enterprise behavior, and the cost is only borne by the enterprise itself, but in fact, the impact will be extensive. The whole Chinese market and enterprise groups may bear the cost and cost for this.

The analysis of netizens and observers is very accurate: forcing Tik tok to sell is the US governments usurpation of Chinese technological innovation enterprises / businesses. No matter how byte hopping seeks justification for its sale (weve cashed in a lot, we can cultivate new businesses, our market is still vast, we can make a comeback in the US market in other ways Can not cover up the fact that the U.S. government has forcibly seized. This is the nature of the matter.

If the byte jitter is weak and agrees to sell Tik toks business in the United States to American enterprises in such a short period of time, it will probably be able to achieve a good cash out, in exchange for IRR, and strive to explain to investors that its platform is still valuable. But what is the future internationalization path of Chinese enterprises? Can Chinese enterprises still do business in the United States?

It will only show the United States and the world that Trumps winning is feasible, it is a winning weapon to crack down on Chinese innovative enterprises and maintain the position of American competition, and is a feasible method and a new standard under the global competition in the new era. The U.S. government can do so, and Chinese companies are willing to accept it.

The U.S. governments pressure on Tik tok means that it despises its own rule of law; if Tik tok does not take up the legal weapon, but voluntarily confesses and cooperates with this kind of usurpation, it is to assist the US government to destroy the existing standards and norms, which will have a widespread negative impact on the future. This kind of kneeling surrender will undoubtedly open the Pandoras box that we do not want to see, and become the beginning of defeat like a mountain.

u2014u2014Trump will claim to his voters his achievements in cracking down on Chinese enterprises and safeguarding the national security of the United States. If Tik tok were to be sold to the US, trump would advertise him as the main achievement of the election (far beyond the trade war). Trumps approval rating will be improved, and so will his chances of winning the election. In the era of epidemic, the theme of trump government is anti China. If trump is re elected, the next four years will focus on Anti China, hoping to create a cold war and knock China to the ground. Selling Tik toks U.S. business is fueling the process;

u2014u2014If Tik toks US business is sold, then Tik toks operations in the US will not be affected. The life of tens of millions or even hundreds of millions of Tik tok users in the United States will remain the same. They will no longer experience the tyranny and hooliganism of Trumps government policies because the app cant be used. They will lose an opportunity to politicize trump. Their development into a political force of anti trump will be dispelled.

u2014u2014What will happen to other U.S. enterprises if they encounter competition from Chinese enterprises in the United States? They will think of the successful case of Tik tok and lobby Washington, hoping to mobilize the White House and politicians to support the operation of Chinese enterprises that constitute competition and force them to withdraw or sell. If you want to expand new business in the United States in the future, you will encounter the same problem;

u2014u2014The political system of the United States is open. All international competitors competing with Chinese technology enterprises in the U.S. market can mobilize resources to lobby in Washington and ask the US government / politicians to sanction Chinese enterprises in the United States and even around the world.

u2014u2014The US government may ask other countries to follow suit and impose relevant sanctions on Chinese enterprises and businesses. Today is Tik toks US business, tomorrow is Canada, the UK, Australia and New Zealand, and then more countries.

Obviously, if byte jitter succumbs to the pressure of the US government, it will have a negative impact on the competitive environment of Chinese science and technology enterprises in the US and even the global market in the medium and long term.

However, if trump gets political capital because he preaches about seizing Tik tok as a political achievement and is re elected, it will have a negative impact on Chinas external environment in the next few years.

This is the price and externality of selling Tik tok.

To put it a little bit more seriously, at this time, the sale of Tik tok business is an aid to US hegemonism.

Enterprises are engaged in business and do not want to be involved in politics, but sometimes there is no way to get involved in politics. This is the situation of Chinas multinational enterprises under the game of big powers in 2020. Huawei is keen to avoid politics, but it cant erase its identity as a Chinese enterprise and can only be forced into politics. Byte skipping may also want to avoid politics and try to use the local team of the United States to manage Tik tok, but neither can change the judgment of American Anti China opponents that it is a Chinese enterprise.

Byte skipping is a Chinese enterprise. Unless it is sold as a whole, it will never get rid of such label and identification. Ali, Tencent, Xiaomi, Huawei Any Chinese enterprise that wants to internationalize is the same in the international vision. As Chinese enterprises, they are no longer able to think about their own business interests out of the big country environment. Their fate has been inextricably bound with the fate of China. Whats more, their choices and actions will affect Chinas destiny. This is probably the burden entrepreneurs dont want to bear, but its the reality in front of them.

If byte skipping sticks to its principles under the pressure of the United States, it can gain the sympathy and respect of Chinese people like Huawei. After surviving trump, it will be stronger than ever.

If byte skipping gives up easily under the pressure of the United States, it will open Pandoras box for Chinese enterprises.

u2014u2014It is necessary to think more from a political point of view than from a purely commercial point of view;

u2014u2014We must think from the perspective of Chinas society, market, regulators and consumers;

u2014u2014It must be realized that an enterprise cannot be alone, and its own fate is also related to other Chinese enterprises. The behavior of other businesses will also affect you in turn. We must consider the political, economic and social externalities of their actions and choices;

u2014u2014In the turbulence and short-term political fluctuation, we must have a certain overall view and be able to calm down;

u2014u2014As long as it is still a Chinese enterprise, it must connect its own destiny with the fate of Chinas country, which is not determined by the subjective will and political attitude of entrepreneurs and management, but must be passively accepted;

u2014u2014In the international game of great powers, Chinese enterprises can be more powerful by uniting as a whole;

u2014u2014Tied to the fate of the country, long-term returns are bound to be far greater than short-term interests.

The two days before byte skipping is gratifying

The U.S. government ignored the facts, did not follow due process of law, arbitrarily decided the terms of the agreement, and even tried to interfere in the negotiation between private enterprises.


If the U.S. government cant give us justice, we will go to the U.S. courts.

u2014u2014Byte bounce declaration

This is the right choice. We must not give in easily and let us hegemonism succeed. We should make full use of legal means and put things back as far as possible. Todays persistence will create greater returns in the future.

National Games make enterprises. Enterprises also create national fortune. This is probably the responsibility and responsibility that Chinas multinational entrepreneurs must face.

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