“Hu Xijin, the editor of the Chinese state media outlet the Global Times, weighed in recently on the most recent merger proposal. “The US restructuring of TikTok’s stake and actual control should be used as a model and promoted globally,” remarked Hu on Twitter. “Overseas operation of companies such as Google, Facebook shall all undergo such restructure and be under actual control of local companies for security concerns.”
It’s not exactly a good sign for Chinese state media to tout a U.S. play designed to be “tough on China” as a model for global behavior. The United States may be bumbling its way into a precedent the consequences of which it has yet to anticipate. “
This was exactly the concern that was raised by experts in North America the second after the Trump administration proposed its bumblingly-stupid approach to TikTok. With the American policy in place it’s going to be that much harder for Western companies operating in China to have convincing arguments that they shouldn’t need to partner with Chinese organizations tans engage in manufacturing, technology, or intellectual property disclosures as a condition of doing business in China. And the issue won’t end in China: American (and other countries’) businesses are almost certain to have (now) US-framed arguments thrown at them when operating all around the world whenever there is even a marginal ‘national security’ concern linked to the foreign company’s operations.