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China tightens export restrictions

Discussion in 'Business & Economics' started by reedak, Aug 31, 2020.

  1. reedak

    reedak Well-Known Member

    May 1, 2014
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    Part 1

    1. China’s inclusion of new technologies on an export restrictions list could hamper TikTok’s sale in the US, according to state media reports, in the latest ratcheting up of trade tensions between the two countries.

    China’s Ministry of Commerce said the government had added items including those related to computing and artificial intelligence to a list of technologies subject to export controls.

    In an interview with the state-run Xinhua news agency, Cui Fan, a government adviser, suggested that the new measures could impact the sale of TikTok by ByteDance, its Chinese owner, because they cover some of its underlying technologies.

    He added that the company, which has attracted interest from Microsoft, Oracle and Walmart for its operations in the US, Canada, Australia and New Zealand, should “seriously and cautiously” decide whether to suspend its negotiations as a result....

    Source: https://www.irishtimes.com/business...pose-new-risk-for-tiktok-sale-in-us-1.4342167

    2. The following analogy shows that any sale of TikTok is an unwise decision.

    Long ago, a landlord in a foreign country allowed a Chinese businessman to grow tea on his mountainous lands which had the fearsome reputation of being haunted by demons and spirits. After some years, the landlord discovered the businessman could make huge profits from the tea grown on his lands. He increased the rent to force the businessman to quit or sell his business to him at dirt-cheap price. Rather than surrendering the fruits of his labour to the thuggish landlord for a few dollars, the businessman burned away his tea plantations and left the country instead.

    By the way, the US and its allies prefer to let their companies go bankrupt instead of selling them to foreign countries, especially China

    3. Besides the above-mentioned reason, China is right to tighten export restrictions for the following reasons:

    (a) All along, the US and its allies have been banning high-tech exports to China.

    (b) China is now ahead of the US in certain areas of technologies. If it fails to prevent its cutting-edge technology from falling into US hands, it will end up at the mercy of American Imperialism.

    (c) As China is larger than a continent such as Europe, its market is huge enough for its home-grown technology to survive and thrive besides "backing up" from the Belt and Road Initiative.

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