TikTok's Looming Sale Promises Global Tech Divide

TikTok's Looming Sale Promises Global Tech Divide
TikTok, owned by the Chinese company ByteDance, is currently facing a critical moment in its existence. The U.S. government is mandating its sale to avoid a nationwide ban. With 170 million users in the U.S. alone, the outcome of this situation could have significant implications for TikTok's market presence and for China's broader technological 
The U.S. Congress has passed a bill that requires ByteDance to either divest TikTok or stop its operations. President Joe Biden is expected to sign this measure into law. The decision not only threatens ByteDance'sexpansion but also foreshadows a possible escalation of the technological rivalry between the United States and China. 
In response, Beijing has adjusted its export controls to potentially block the sale on national security grounds. The main concern is the proprietary algorithm that forms the basis of TikTok's success. 
The proposed sale of this algorithm has been met with criticism, as it may cause a significant decline in TikTok's operational effectiveness. This would certainly benefit its competitors such as YouTube and Instagram, who could gain from TikTok's weakened state or exit from the market. 
What Does This Mean for Me?
This issue is part of a broader context in which the United States and China are increasingly diverging in their technological domains. This could lead to a split in the global tech landscape, affecting control over data centers, internet satellites, undersea cables, and semiconductors.
If TikTok is banned, it may accelerate Beijing's efforts to expand its digital influence in developing regions such as Southeast Asia. This would be an attempt to counterbalance the US's technological influence.
Risk Disclosure: Trading in financial instruments involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks. Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed. Arincen would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Arincen and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website. It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Arincen and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website. Arincen may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.