Blowback Time: China Says TikTok Deal Is A Model For How It Should Deal With US Companies In China

from the because-of-course dept

We've already covered what a ridiculous, pathetic grift the Oracle/TikTok deal was. Despite it being premised on a "national security threat" from China, because the app might share some data (all of which is easily buyable from data brokers) with Chinese officials, the final deal cured none of that, left the Chinese firm ByteDance with 80% ownership of TikTok, and gave Trump supporters at Oracle a fat contract -- and allowed Trump to pretend he did something.

Of course, what he really did was hand China a huge gift. In response to the deal, state media in China is now highlighting how the Chinese government can use this deal as a model for the Chinese to force the restructuring of US tech companies, and force the data to be controlled by local companies in China. This is from the editor-in-chief of The Global Times, a Chinese, state-sponsored newspaper:

That says:

The US restructuring of TikTok’s stake and actual control should be used as a model and promoted globally. Overseas operation of companies such as Google, Facebook shall all undergo such restructure and be under actual control of local companies for security concerns.

So, beyond doing absolutely nothing to solve the "problem" that politicians in the US laid out, the deal works in reverse. It's given justification for China to mess with American companies in the same way, and push to expose more data to the Chinese government.

Great work, Trump. Hell of a deal.

Meanwhile, the same Twitter feed says that it's expected that officials in Beijing are going to reject the deal from their end, and seek to negotiate one even more favorable to China's "national security interests and dignity."

So, beyond everything else, Trump's "deal" has probably done more to help China, and harm data privacy and protection, while also handing China a justification playbook to do so: "See, we're just following your lead!"

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Filed Under: blowback, china, data localization, donald trump
Companies: bytedance, facebook, google, oracle, tiktok, walmart

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  1. icon
    PaulT (profile), 23 Sep 2020 @ 2:47am

    Re: Re:

    "But the fact remains he/his company still owns a lot of land, has multiple commercial rentals, and has more money now than when he started with his father's loan/gift."

    There's been multiple studies that suggest that he'd have made more money if he'd just put the money in a standard investment account - and that's assuming that he's as rich as he claims. I suspect that part of his refusal to release tax documents is that they reflect his true wealth. Or, solid evidence of an extent of foreign influence that calls into question every action he's made since starting his campaign.

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    "So I can't say he knows nothing about business but he sure gives that impression each time he talks."

    He's a used car salesman. He can bluster and lie as much as he wants to get the initial sale, but he fails miserably with any kind of long term planning. That's why his pattern is to bluster about some supposed successes, then file bankruptcy and still contractors. He can only do the initial sale, not the long term business model.

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