Beijing holds key to TikTok sale under new rules, says expert

China's new rules on tech exports mean ByteDance's sale of TikTok's US operations could need Beijing's approval, a Chinese trade expert says, a requirement that would complicate the forced and politically charged divestment.

ByteDance has been ordered by US President Donald Trump to divest short video app TikTok - which is challenging the order - in the United States amid security concerns over the personal data it handles.

Microsoft and Oracle are among the suitors for the assets, which also include TikTok's Canada, New Zealand and Australia operations.

However, China on Friday revised a list of technologies that are banned or restricted for export for the first time in 12 years

And Cui Fan, a professor of international trade at the University of International Business and Economics in Beijing, said the changes would apply to TikTok.

The Ministry of Commerce added 23 items - including technologies such as personal information push services based on data analysis and artificial intelligence interactive interface technology - to the restricted list.

It can take up to 30 days to obtain preliminary approval to export the technology.

Cui noted that ByteDance's development overseas had relied on its domestic technology that provided the core algorithm and said the company may need to transfer software codes or usage rights to the new owner of TikTok from China to overseas.

TikTok's secret weapon is believed to be its recommendation engine that keeps users glued to their screens. This engine, or algorithm, powers TikTok's "For You" page, which recommends the next video to watch based on an analysis of your behavior.

On another tech front, Chinese telecoms equipment maker Huawei Technologies is focusing on its budding cloud business, which still has access to US chips despite sanctions against the company, to secure its survival, a report said.

Huawei's cloud computing business sells computing power and storage to companies, including giving them access to artificial intelligence, and has been growing rapidly, the Financial Times newspaper reported, citing sources.

In January, Huawei put the unit on an equal footing with its smartphones and telecoms equipment businesses.

The unit was stepping up its offerings and Beijing will increasingly support the company through public cloud contracts, the report said.

Ren Zhengfei, Huawei's founder and chief executive, said "some American politicians wanted our death," but Huawei will continue to stick to the path of self-development and openness, according to his speech at several Chinese top universities last month.

Ren said since being blacklisted by Washington, Huawei has transferred investment from the United States to Russia, expanding its scientific team and raising scientists' pay.

avery.chen@singtaonewscorp.com