For most of the world, Tik Tok may be a business issue but for Donald Trump the Tik Tok issue is a manifestation of his battle with China. With US elections coming, Trump wants to show one trophy of his fight. There really cannot be a better trophy than Tik Tok.
The US wants China to give up the US business of Tik Tok on security grounds. That is asking a lot from a nation that created the ecosystem to build the company. Tik Tok is evaluating signing a long term deal with Oracle and operating in the US without Chinese ownership.
For Donald Trump, Tik Tok represents what China has managed to do better in the global start-up eco-system. If you look at India, players like Ant and Tencent have a much bigger and deeper stake in the Indian start-up ecosystem than any of the US players.
Secondly, there is the reach of Tik Tok of 200 million registered users in the US. Trump sees that as a distinct threat. The US does not want China getting a larger US mindshare. That is the genesis of the entire Tik Tok issue, which has also transformed into a security issue.
The US companies would be happy to buy out Tik Tok, US, but China has other plans, notwithstanding the price of $30 billion offered. China just passed a new law barring transfer of software intellectual IPs and algorithms to non-Chinese acquirers without prior approval of the Chinese government.
For most of the world, Tik Tok may be a business issue but for Donald Trump the Tik Tok issue is a manifestation of his battle with China. With US elections coming, Trump wants to show one trophy of his fight. There really cannot be a better trophy than Tik Tok.
The US wants China to give up the US business of Tik Tok on security grounds. That is asking a lot from a nation that created the ecosystem to build the company. Tik Tok is evaluating signing a long term deal with Oracle and operating in the US without Chinese ownership.
For Donald Trump, Tik Tok represents what China has managed to do better in the global start-up eco-system. If you look at India, players like Ant and Tencent have a much bigger and deeper stake in the Indian start-up ecosystem than any of the US players.
Secondly, there is the reach of Tik Tok of 200 million registered users in the US. Trump sees that as a distinct threat. The US does not want China getting a larger US mindshare. That is the genesis of the entire Tik Tok issue, which has also transformed into a security issue.
The US companies would be happy to buy out Tik Tok, US, but China has other plans, notwithstanding the price of $30 billion offered. China just passed a new law barring transfer of software intellectual IPs and algorithms to non-Chinese acquirers without prior approval of the Chinese government.