The Chinese government has acquired a stake and one of three board seats at a major subsidiary of Byddance, the owner of TickTock, the report said on Tuesday, reviving the debate over whether the popular short-form video app is a threat to national security.
Chinese authorities now own a 1% stake in Beijing ByteDance Company, which owns the original license to operate the Chinese platform Dwayne, the domestic version of TickTock, and the popular news app Tautiao. It took place on April 30 earlier this year, according to company data obtained through the Tiananche Enterprise Data app.
According to Reuters, Wangtau Jongwein (Beijing) Technology, a Chinese state-owned entity, bought the share, with funding backed by the country’s top Internet sensor, the Cyberspace Administration of China (CAC).
The agreement, however, does not indicate that Ting has a direct partnership with WangTouZhongWen, and therefore does not yet appear to have a direct impact on the Cayman Islands app or bitdance. Matter
Nonetheless, Beijing has taken this step in a massive campaign to wield greater control over its technology giants, controlling their influence through anti-trust investigations and increased regulations.
Paul Haswell, a Hong Kong-based partner at Pencent Mason’s Law Firm, told Reuters that the deal “should be seen as a step to rein in the Chinese government.” [tech firms] And take control. He hoped to see more such agreements, which could turn private technology companies into state-sponsored state-owned enterprises.
The news calls on Florida Senator Marco Rubio to take “immediate action” against the Biden administration for banning Tiktok and WeChat as a threat to U.S. privacy and security.
“Beijing’s aggression makes it clear that the regime sees Tiktok as an extension of the party-state and that the United States must consider it that way,” he said in a statement.
Duane is not the only major Chinese social platform where Beijing owns a share. It has a 1% stake in a subsidiary of the social media platform Weibo and has the power to hire board members there. The entity owned by that part is the China Internet Investment Fund (CIIF), which is also supported by CAC. CIIF has previously invested in short-video platforms and Dwyan’s rival Quaishou Technology and Podcast Platform in Gimala.