TikTok wants to distance itself from China — but Beijing is getting involved
BEIJING — China says it would «strongly oppose» a forced sale of TikTok, making clear the government's involvement with the social media giant that's trying hard to distance itself from Beijing authorities.
The Ministry of Commerce said Thursday that a sale or spinoff of TikTok from its Beijing-based parent ByteDance is subject to Chinese law on tech exports — which requires licenses for the export of certain technology based on national security concerns. ByteDance also owns Douyin, the Chinese version of TikTok that's popular in the country.
«The Chinese government would make a decision in accordance with law,» said spokesperson Shu Jueting in Chinese, translated by CNBC.
Shu was speaking at the ministry's weekly press conference, hours ahead of TikTok CEO Shou Zi Chew's testimony before a U.S. House of Representatives committee.
Lawmakers questioned Chew for more than five hours, and wanted clarity on TikTok's ability to operate independently of Chinese influences on its parent.
ByteDance did not immediately respond to a request for comment on the Chinese Commerce Ministry's remarks.
The questioning did not appear to relieve U.S. lawmakers.
«At the end of the day, it was clear from the testimony that Mr. Chew reports to the CEO of ByteDance. ByteDance controls TikTok,» Cameron Kelly, visiting fellow at Brookings Institution, told CNBC's "Squawk Box Asia" Friday. Kelly used to be a general counsel at the U.S. Department of Commerce from 2009 to 2013.
Kelly said the evidence that ByteDance has legal control of TikTok increases U.S. lawmakers' doubts over how well the app can demonstrate its independence through restructuring.
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