TikTok court decision ‘rational;’ no to forced deal

By GT staff reporters Source: Global Times Published: 2020/9/28 19:48:40 Last Updated: 2020/9/28 22:31:34

Economic interests could lead to a TikTok deal by deadline: expert


TikTok US Photo: VCG


 The US court's decision to halt part of the Trump administration's ban on TikTok has temporarily cushioned the US' relentless crackdown on Chinese firms, which is a welcomed rational move, Chinese experts said. 

However, they also warned that this wasn't a final decision, and more efforts will be required from the Chinese government and firms to protect their interests.

The comments came after a US judge on Sunday temporarily blocked the Trump administration's ban on downloads of the popular video-sharing platform, giving its parent company - Beijing-based start-up ByteDance - more time to facilitate a deal with US firms.

In the wake of an emergency hearing on Sunday, US District Judge Carl Nichols granted TikTok's request for a temporary restraining order against a ban by the Trump administration. 

The Chinese Foreign Ministry said Monday in a routine media briefing that China opposes US bullying, and hopes it could respect the market economy and fair competition, provide an open and non-discriminatory environment to all firms operating in the country.

"The injunction is welcomed and has a far-reaching effect, preventing the creation of the US' so-called Clean Network, which shows that the Trump administration's bullying of Chinese firms has deviated far from law and the will of people," said Zuo Xiaodong, vice president of the China Information Security Research Institute.

It is hoped that the US court decision on TikTok and on WeChat will build a "legal protection wall," which could signal a turning point in the fate of Chinese firms, Zuo told the Global Times on Monday.

A US federal judge issued an injunction last week against Trump's executive order, and the injunction has effectively blocked the order that would ban WeChat operating in the US.

Shen Yi, director of the Research Center for Cyberspace Governance at Fudan University, told the Global Times on Monday that the US court decision is a positive sign, but also proves that it has become quite difficult to have someone who could use his conscience and a rational mind-set toward China and Chinese firms in the Trump administration marked by "hysteria."

The TikTok download ban is absurd, Shen said. "The Trump administration has always resorted to the national security reason. But if the app cannot be updated, its users will be exposed to data vulnerability. Then what is the so-called security for?" Shen asked.

TikTok's users have surged in the US market in recent years, especially as the COVID-19 pandemic locked most people at home. Its monthly active users have grown nearly 800 percent to about 100 million in the US since January 2018, when the application was used by about only 11 million Americans, according to data revealed by TikTok in August.

A group of TikTok creators had reportedly sued the US federal government over the move to bar TikTok downloads in the US.

"We're pleased that the court agreed with our arguments and issued an injunction preventing the implementation of the TikTok app ban. We will continue defending our rights for the benefit of our community and employees," TikTok said following the decision. 

Meanwhile, TikTok said that it will pursue its ongoing dialogue with the Trump administration to turn its proposed cooperation with US firms, which President Donald Trump gave preliminary approval to last weekend, into an agreement.

The US Commerce Department said Sunday that "the government will comply with the injunction, and has taken steps to do so. But it intends to vigorously defend the executive order and the Secretary's implementation efforts from legal challenges." 



Defending bottom line


The blocking of the partial ban on TikTok shows that the app's fate remains uncertain since the focus has shifted from the court injunction, which could be hailed as hard-won progress, to the more crucial part - whether a deal could be reached.

A more comprehensive ban on TikTok takes effect on November 12, after the US presidential election.

In August, Trump issued an executive order giving ByteDance 90 days to either sell or spin off its TikTok business in the US, extending the original deadline of September 20 to November 12; otherwise, transactions with ByteDance would be prohibited.

"The court decision is not the end, and the US clampdown on Chinese firms won't cease," Zuo said, adding that it remains a long battle for ByteDance since the deal involves complicated and subtle competition between authorities in China and the US, as well as between firms on both sides.

Chinese officials are reviewing the deal that ByteDance proposed to team up with Oracle and Walmart to solve the data security issue that the Trump administration raised. Observers said China won't allow core technologies to fall into US hands in a forced deal, even if the app is shut down by the November deadline.

China in August added algorithms to its export control list for the first time, scuttling the US plan to stealthily rob the Chinese firm. On September 19, the country issued provisions for its long-awaited first "unreliable entity list," to penalize foreign entities and individuals that undermine China's national interests and Chinese firms' legitimate rights.

Zuo said Chinese authorities' review of the TikTok deal won't be completed in a short time, and will also not be in sync with the US - meaning, the review might miss the November deadline.

In addition to the discreet review of the proposal, Chinese experts said that it is likely that the Chinese government will roll out measures to further protect the interests of Chinese firms operating overseas.

Qi Yue, a research fellow at the China Cybersecurity Review Technology and Certification Center, told the Global Times on Monday that it is not clear what approaches the Chinese government will take to protect its firms. But the move is a much-needed one, given the "mafia style" of the Trump administration.

Since the November deadline follows the US presidential election, there is still chance that a compromise deal would be reached, Shen said. 

"Trump has played the China card very hard for votes, but he also wants to pursue economic interests after the election" no matter if he get reelected or not, as the formal power transition will take place in January 2021, Shen noted, adding that capital won't say no to TikTok because its robust development means profits.


Posted in: DIPLOMACY

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