As Chinese tech giants become global targets, Bytedance may sell off TikTok
China's economy
After being blamed for spreading the coronavirus in the whole world, Chinese technology companies have become an easy target.
Huawei is facing bans,Chinese apps are being boycotted and nowthe US could be taking inspiration from India on banning Chinese mobile applications.
The US Secretary of State, Mike Pompeohad earlier indicated that he could ban Chinese apps such as TikTok. Due to the spreading hatred towards TikTok, its parents company Bytedance could consider selling off TikTok and the White House believes it is possible.
Economic adviser Larry Kudlow believes that bleeding Bytedance could cut off its hand to save itself.
“We haven’t made final decisions [on the ban] but as has been reported in some places, I think TikTok is going to pull out of the holding company which is China-run and operate as an independent company,” Kudlow said.
In such a situation, TikTok could slip out of the clutches of the Communist Party.TikTok’s ban is an economic loss for China —something that adds to a long list of troubles for the Communist Party.
The impact of coronavirus on China’s economy was immense and has triggered a major jobcrisis.This summermore than eight million Chinese students are set to graduateand are in search of jobs. However, China doesn’t have enough jobs right now.
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According to the official data, the urban unemployment rate was around 5.7 per cent in June. It is believed that theactual numbers could be much worse. According to a report, 80 million service sector employees and 20 million manufacturing jobs have been affected by the coronavirus.
In addition, companies are moving out of China. Apple’s supplier Foxconn has announced its plans for India. The manufacturer for iPhones and iPads will invest one billion dollars over the next three years and the money will go towards Foxconn’s plant in Tamil Nadu.
For now, this facility produces lower end variants of the iPhone. After the investment, the plant will make other iPhone models that are produced in China.
Until now, China was facing the threatof economic distancing from the world. However, now companies that called China their home are moving away.