In the meantime, Trump believes the Treasury should receive a share of every sale.
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This story originally appeared on Engadget
China will not accept TikTok’s “theft” and has “many options to respond” if the US government tries to force a sale, an editorial in the state-run newspaper reported. China Daily (by Reuters). This follows the news that Microsoft wants to take over TikTok activities in certain markets after US President Donald Trump threatened to ban the app. Trump said such a sale could be allowed, but would require “key money” to be paid to the US Treasury.
Microsoft announced earlier this week that talks about buying TikTok services were in the US, Canada, Australia, and New Zealand. The company said CEO Satya Nadella discussed the idea with Trump and “recognized the personal commitment of the US government and President Trump as it continues to develop strong security protection for the country.”
“China will in no way accept” theft “from a technology company and has many options to respond if the government executes its planned crush and attack,” the China Daily reported.
In the meantime, TikTok’s parent company ByteDance announced BBC It had “committed to being a global company” and “examined the possibility of establishing a TikTok headquarters outside of the United States to better serve its global users.” The social media app is one of the few that originated in China to be successful in the American market.
Hu Xijin, editor of another Chinese government-sponsored newspaper, the Global Times, described the potential sale as “open robbery” and tweeted: “President Trump is making America that was so big a dishonest country.” Meanwhile, US Secretary of State Mike Pompeo said TikTok “sent data directly to the Chinese Communist Party.”
This is an open robbery. The world is watching and God is watching President Trump transform America, once great, into a rogue country. pic.twitter.com/FaL3MkwsYe
– Hu Xijin @ 进 (@HuXijin_GT) August 4, 2020
The U.S. government has a clearer argument against Huawei for possible theft of intellectual property and other issues, making the justification for banning TikTok less clear. In addition, the White House has yet to explain why the Treasury should accept a deal. “I hate to say that, but it’s almost a gangster behavior,” said Charlotte Jee MIT Technology Review to BBC. “We threaten a ban that lowers the price and then say, ‘Oh, we should get a piece of it later to thank what we did there.'”
Microsoft has set a September 15 deadline to close a sale or drop the deal.