Tiktok fate rebirth variable: China may not be allowed to sell

category:Global
 Tiktok fate rebirth variable: China may not be allowed to sell


On August 28, the Ministry of Commerce and the Ministry of science and technology adjusted and issued the catalogue of Chinas Technologies Prohibited from export and restricted export (Announcement No. 38 of the Ministry of science and technology of the Ministry of Commerce, hereinafter referred to as the catalogue).

The revision of the catalogue has successively solicited opinions from relevant departments, industry associations, industry academia and the public, involving 53 technical items: 1. 4 technical items prohibited from export have been deleted; 2. 5 technical items with export restrictions have been deleted; 3. 23 technical items with export restrictions have been added; 4. The control points and technical parameters of 21 technical items have been modified.

According to the regulations of the peoples Republic of China on the administration of technology import and export, all those involved in the transfer of technology abroad, whether by trade, investment or other means, must strictly abide by the regulations of the peoples Republic of China on the administration of technology import and export. The export of restricted technologies must apply to the provincial competent commercial authorities for technology export license and obtain the approval To conduct substantive negotiations and sign technology export contracts.

According to the official website of the Ministry of Commerce, on August 28, the Ministry of Commerce, together with the Ministry of science and technology, adjusted and released the catalogue of Chinas Technologies Prohibited from export and restricted export (Announcement No. 38 of 2020 of the Ministry of Commerce, hereinafter referred to as the catalogue). The responsible comrades of the Department of service and trade of the Ministry of Commerce answered questions raised by reporters on the catalogue.

1u3001 What are the background and main considerations of the adjustment of the catalogue?

According to the regulations of the peoples Republic of China on the administration of technology import and export, the Ministry of Commerce, together with the Ministry of science and technology, formulates, adjusts and publishes the catalogue of Technologies Prohibited or restricted for export. The main purpose is to standardize the administration of technology export, promote scientific and technological progress and foreign economic and technological cooperation, and safeguard national economic security. The last revision of the catalogue was in 2008, more than 10 years ago. With the rapid development of science and technology and the continuous improvement of Chinas scientific and technological strength and industrial competitiveness, it is imperative to timely adjust the catalogue according to international practice. In this revision of the catalogue, four technical items that are prohibited from export are deleted, and the technical contents that are restricted from export are adjusted.

The Chinese government has always adhered to the principle of opening up to promote development, adhere to the open cooperation of innovation capability, and strive to create a good environment for scientific and technological innovation and international cooperation, and promote the free flow of technological innovation elements. Since the 18th CPC National Congress, Chinas technology trade has developed steadily and rapidly. According to the statistics of the Ministry of Commerce, in 2013, Chinas technology export contract amount was US $20 billion, less than half of the import contract amount; in 2019, the technology export contract amount was US $32.1 billion, which was basically close to the import contract amount. Technology export not only optimizes Chinas export structure, but also promotes the industrial upgrading and economic development of relevant trading partners. In the future, we will further strengthen technical trade cooperation with other countries, continuously optimize the business environment for technology trade, and promote the healthy, orderly and sustainable development of Chinas technology trade.

2u3001 What are the main contents of this adjustment?

The revision of the catalogue has solicited opinions from relevant departments, industry associations, industry academia and the public, involving 53 technical items

The first is to delete four technical items that are prohibited from export, including microbial fertilizer technology, caffeine production technology, riboflavin production technology and vitamin fermentation technology.

Secondly, five technical items that restrict the export of Newcastle disease vaccine technology, natural drug production technology, preparation and processing technology of functional polymer materials, chemical synthesis and semi synthetic drug production technology, and information security firewall software technology were deleted.

Third, 23 items of restricted export technology were added, including artificial breeding technology of agricultural wild plants, breeding and breed cultivation technology of cashmere goat, production technology of space materials, design and construction technology of large-scale high-speed wind tunnel, aerospace bearing technology and laser technology.

Fourth, the control points and technical parameters of 21 technical items were modified, involving the fields of crop breeding technology, aquatic germplasm breeding technology, chemical raw material production technology, biological pesticide production technology, spacecraft measurement and control technology, spatial data transmission technology, cartography technology, information processing technology, vacuum technology and other fields.

3u3001 This time, the Ministry of Commerce and the Ministry of science and technology only released the contents of the catalogue of Technologies Prohibited from export and restricted in China. How do you think about the catalogue? What are the future work plans?

At present, the Ministry of Commerce and the Ministry of science and technology are still promoting the revision of the catalogue in an orderly manner. In the next step, China will further delete and adjust the Chinas catalogue of Technologies Prohibited from exporting and restricting exports; at the same time, according to the administrative measures for Technologies Prohibited from importing and restricting imports, which was revised and released at the end of 2019, the catalogue of Technologies Prohibited from import and restricted by China will be greatly simplified to further highlight the role of market regulation.

The Chinese government attaches great importance to optimizing the business environment for technology trade and actively promotes the facilitation of technology trade. Since this year, the Ministry of Commerce has issued the notice on further facilitating the work of technology import and export during the period of epidemic prevention and control, actively promoting paperless registration of technology import and export contracts, and studying measures to relax restrictions on business entities of technology import and export. In the next step, the Ministry of Commerce will continue to launch more technology trade facilitation measures, constantly improve the technology trade promotion platform, and strengthen technical trade exchanges and cooperation with other countries in the world.

4u3001 What is the definition of technology export and what forms are included? How do enterprises apply for export restricted technologies?

According to the regulations of the peoples Republic of China on the administration of technology import and export, technology export refers to the transfer of technology from Chinas territory to overseas through trade, investment or economic and technological cooperation, including patent right transfer, patent application right transfer, patent implementation license, technology secret transfer, technology service and other forms of technology transfer. In other words, the regulations of the peoples Republic of China on the administration of technology import and export shall be complied with, regardless of whether the technology is transferred to other countries by means of trade or investment.

Technology export can be divided into three categories: freedom, restriction and prohibition. Free technology is subject to post contract registration, while restricted technology needs to apply for license. Since 2007, the Ministry of Commerce has delegated the import and export licensing authority of restricted technologies to the competent commercial departments of provinces, autonomous regions and municipalities directly under the central government. After receiving the application for technology export, the competent department of Commerce shall examine the application together with the competent department of science and technology, make a decision of approval or disapproval within 30 working days from the date of receiving the application, and issue the letter of intent of the peoples Republic of China for technology export license. The applicant can negotiate with the foreign parties for the technical intent. After signing the technology export contract, the applicant must apply for the technology export license of the peoples Republic of China. The competent department of Commerce shall examine the authenticity of the technology export contract, make a decision on whether to license or not the technology export within 15 working days from the date of receiving the relevant documents. If the license is granted, the technology export license of the peoples Republic of China shall be issued. The technology export contract shall come into force on the date of issuance of the technology export license.

Authoritative experts take the sale of tiktoks US business as an example

After the Ministry of Commerce and the Ministry of science and technology adjusted and released the catalogue of Chinas export prohibited and restricted technologies, this undoubtedly put a brake on the sale of tiktok.

The notification adjustment means that if the byte jitter needs to export related technology, the license application process should be carried out first.

Xinhua news agency interviewed Cui fan, Professor of International Trade Department of University of international business and economics, on the impact of the policy adjustment on byte jitter

This is the most important sentence

What is the impact of this catalog adjustment and release on some enterprises that are undertaking or considering technology export?

For technology exporters who have not completed the transaction at the time of the entry into force of the new catalogue, if they are ready to export restricted technologies in the adjusted catalogue, it is recommended to suspend the negotiation and trade procedures and complete the relevant application procedures. Cui Fan said.

Citing the recent public concern that byte hop may sell tiktoks US business, he said that as a rapidly growing innovative enterprise, byte hop has a number of cutting-edge technologies in artificial intelligence and other fields, and some technologies may involve the adjusted catalog. For example, under the item of information processing technology of computer service industry with export restriction, the newly added Article 21 on personalized information push service technology based on data analysis and Article 18 on artificial intelligence interactive interface technology and other control points may involve the companys technology.

According to media reports, the U.S. government has investigated byte skippings U.S. business on the grounds of national security, requiring byte skipping to divest tiktok within a limited period of time and sell the latter to an American company.

If the byte hopping program exports related technology, the licensing process should be performed. Cui Fan said that the rapid development of byte skipping international business relies on its strong domestic technical support. It continuously provides overseas companies with the latest core algorithm services, which is a typical export of technical services. If its international business is to continue to operate smoothly, no matter who its new owner and operator is, it is likely to need to transfer software code or its right of use from China to overseas, and may also need to provide technical services from China to overseas.

Therefore, it is suggested that byte skipping carefully study the adjusted catalog, seriously and carefully consider whether it is necessary to suspend substantive negotiations on relevant transactions, perform the statutory declaration procedures, and then take further actions as appropriate. Cui Fan said.

According to the analysis, today, everything has become clear: on the one hand, politicians, competitors, the US government and capital from the United States regard tiktok as a chicken that can lay golden eggs, and are eager to grab their own interests in this acquisition. On the other hand, with the revision of the catalogue of Chinas export prohibited and restricted technologies issued by the Ministry of Commerce, China is eager to seize its own interests The government has officially entered the game. The bottom line is clear and the tools are in place. If extreme circumstances happen, the acquisition that shakes the Internet industry is likely not to be approved at the government level.

On August 27, tiktok CEO Kevin Mayer, who has been in office for less than three months, announced his resignation, indicating the fate of the short video app.

In the past month, a number of US technology companies have shown strong interest in the acquisition of tiktok, including social platform twitter, streaming media giant Netflix, asset management companies centricus and Triller. It has been revealed that they are negotiating with byte hop to acquire tiktok business. Among all the potential buyers, Microsoft is the earlier company to take a position.

In fact, it is not easy to acquire tiktok. Even if its just about buying tiktoks U.S. business, its not just about buying tiktoks employees, servers and offices in the United States.

Many commentators have pointed out that tiktoks most valuable recommendation algorithm is the personalized recommendation algorithm that supports its operation, which has recently been listed in the catalogue of Chinas Technologies Prohibited from export and restricted by the Ministry of Commerce.

In an interview with the New York Times, recommender system engineer Carl Higley said that if you cant get user history data - which means connecting to servers with byte hopping distribution around the world - tiktok may need to start from scratch.

Related reports:

The children of Trumps allies all opposed the killing of tiktok, and some cried

Recently, Lindsey Graham, an important ally of President trump and a senior Republican senator in the US Congress, gave an interview to Vanity Fair magazine.

In the interview, Graham revealed that it was under his persuasion that trump did not completely ban tiktok, a popular mobile phone social software of Chinas byte beat company in the United States, and allowed to resell tiktoks business.

As for why he wanted to prevent trump from directly blocking Tik tok, Graham gave a previously unknown situation.

Whats the situation?

In an exclusive interview with Vanity Fair magazine, Graham said that one of the reasons why he would urge trump not to kill tiktok directly is that his niece, as well as the daughter of one of Trumps allies, is very opposed to this practice, and some even cry about it.

(screenshot from Vanity Fair magazine, the man without a mask is Graham)

Graham said he first received a call from fox news commentator Sean Hannity after the White House initially said it was going to block tiktok directly. The most pro trump media source in the US public opinion field told Graham that his daughter was crying because tiktok was going to be killed by the government.

After that, Graham said his niece had also called to oppose the governments ban on tiktok - even David Petraeus, former director of the CIA, called Graham to express concern about the White Houses intention to block tiktok directly. Graham said the calls made him realize that tiktoks problems were not simple.

At the same time, U.S. Treasury Secretary mnuchin also talked to Graham on the issue and told him that there are 100 million people using tiktok in the United States, and most of them are young people. Most of the videos are kitten dancing. However, trump plans to block the platform directly.

So Graham decided to call trump and persuade him not to kill tiktok. He also said that if he was to make the decision, he would not block such a video platform to show small animals dancing.

In a phone call to trump, Graham told trump that he understood Trumps concern that the platform was held by the Communist Party of China and that the data would be taken away by the Chinese government. But he also reminded trump that if the platform is blocked directly, many young people will tear you (trump) and said it would not be a good decision.

Then Graham suggested to trump that Microsoft or other American companies should buy tiktok and take tiktok into the hands of Americans, so that the platform can survive and continue to grow, because there are many people who like it.

(so) if tiktok is finally saved, you have to thank me, Graham told Vanity Fair magazine.

(the picture shows that the New York Post is also reprinting this interview with Graham from Vanity Fair magazine.)

Grahams story of persuading trump not to block Tik tok directly is not a lie.

According to a report by CNN in early August this year, Graham called trump at the call of U.S. Treasury Secretary manuchin to persuade him not to directly block this platform, which is particularly popular among young Americans. This is in line with what he now tells Vanity Fair magazine.

However, CNNs report at that time did not mention that the families of these allies around trump were against the blocking of tiktok. Instead, they thought that Graham and others would persuade trump not to do so because they were worried that if they offended young people who had the same votes, they might hurt Trumps chances of re-election in November this year.

(screenshot from CNN)

Of course, in the eyes of many Chinese people, whether it is to directly block tiktok, a subsidiary of a Chinese enterprise that has no harm to the United States, or to let it sell the company and business to an American enterprise, this is essentially political persecution of Chinese enterprises. How can it be regarded as saving when seriously harming the interests of Chinese enterprises?

A report in the New York Times today also mentioned that in order to dispel the concerns of the U.S. government, tiktok had already started some negotiations with Microsoft, which has a good relationship with the U.S. government, about taking a stake in tiktok. But neither side wants to buy or sell the entire business of tiktok. However, trump suddenly stepped out to deeply intervene in the matter, and set a deadline of September 15, when tiktok must be sold. As a result, the two companies had to start urgent negotiations on the matter, and eventually forced tiktok to choose to sue the U.S. government.

Therefore, the New York Times believes that trump has directly turned the original cooperation between the two companies into a political soap opera.

(screenshot from the New York Times)

In addition, although the report of the new york times did not mention that American young people might not vote for trump because of tiktoks being punished, the New York Times also mentioned the situation that U.S. Treasury Secretary mnuchin and others hoped that trump would not directly block tiktok, but let him sell business to American companies.

This may indicate that if trump and his government really want to be tough on tiktok, it will at least be a lose lose lose situation, and trump may pay a lot for it.

(function(){( window.slotbydup=window .slotbydup||[]).push({id:u5811557,container:ssp_ 5811557, async:true }This article is from China foundation, author: Taylor, editor in charge: Hu Shuli_ MN7479