TikTok Catapults to Level of Facebook, Instagram, YouTube

TikTok has exceeded 1.5 billion downloads — half of them in the past year — and, in the process, has become a genuine competitor of Facebook, Instagram and YouTube. Chinese AI firm ByteDance, owner of TikTok, is valued at $75 billion, one of the world’s most valuable startups. The company is reportedly looking into an IPO in Hong Kong in 2020. Now that it has commanded widespread attention, ByteDance is also under scrutiny over how it stores personal data and if it follows orders from the Chinese government to censor content. Continue reading TikTok Catapults to Level of Facebook, Instagram, YouTube

U.S. Investigates TikTok App Based on Security Concerns

The Committee on Foreign Investment in the United States (CFIUS) is conducting a national security review of Chinese company ByteDance’s acquisition of Musical.ly, in November 2017, for $800 million to $1 billion. ByteDance merged Musical.ly, an app popular among teens for making karaoke videos, with its similar service TikTok. Over the past year, TikTok has been downloaded 750+ million times, and U.S. lawmakers are concerned about its growing influence. One source said the U.S. has evidence TikTok sends data to China. Continue reading U.S. Investigates TikTok App Based on Security Concerns

Foreign Investment Law Does Not Deter Chinese Investing

The U.S. has yet to define the specifics of a 2018 law designed to limit foreign access to critical technologies. In the meantime, Chinese investors continue to put money in U.S. startups and venture capital funds. U.S. tech entrepreneurs also welcome a connection with China, and investment between the two countries remains significant. The tangle of investments in a single company can make it hard to determine provenance. Even so, successful Chinese AI startup SenseTime Group was blacklisted by the Trump administration. Continue reading Foreign Investment Law Does Not Deter Chinese Investing

Intelligence Agencies Agree to Rein In Huawei Technologies

In July, said sources, heads of intelligence agencies from Australia, Canada, New Zealand, the U.K. and U.S. met in Canada and agreed that they needed to “contain” China’s telecom manufacturer Huawei Technologies. The advent of 5G mobile networks has heightened the already-existing risk of using Huawei gear. The group discussed Chinese cyberespionage and expanding military, and ways to protect telecom networks. Despite the lack of a consensus, the group did agree that an outright Huawei ban is impractical. Continue reading Intelligence Agencies Agree to Rein In Huawei Technologies

Congress Advances a Bill That Could Curb U.S.-Chinese Deals

Congress is advancing a bill that would put more power in the hands of the federal government to block deals between U.S. and Chinese companies deemed to risk national security. Tensions between the two countries are high as each threatens and seeks to negotiate with the other. President Trump and Chinese vice premier Liu He met to discuss potential concessions as the U.S. ramps up threats of tariffs, while China’s antitrust division just lifted a many-month delay on Bain Capital’s $18 billion deal with Toshiba’s memory chip unit. Continue reading Congress Advances a Bill That Could Curb U.S.-Chinese Deals

Broadcom’s Bid for Qualcomm Blocked Over Security Issues

Citing national security concerns, President Donald Trump has put the brakes on Singapore-based Broadcom’s attempt to acquire rival chipmaker Qualcomm. The companies were ordered to abandon the $117 billion acquisition bid and dismiss any proposals for Broadcom’s candidates to run for seats on Qualcomm’s board. Had it been approved, the purchase would have marked the largest tech deal of its kind. Broadcom says it “strongly disagrees that its proposed acquisition of Qualcomm raises any national security concerns.” Continue reading Broadcom’s Bid for Qualcomm Blocked Over Security Issues

U.S., China Grapple Over Dominance in Critical Technologies

The U.S. and China are locked in a battle over technology, which went public over Singapore-based Broadcom’s hostile bid to buy the U.S.-based Qualcomm. Should Broadcom succeed, it will make that company a major influence in computer chip development. But a U.S. Treasury official, in calling for a review of the deal, wrote that, “China would likely compete robustly to fill any void left by Qualcomm.” Under president Xi Jinping, China has made no secret of its plan to dominate tech industries including artificial intelligence and supercomputers. Continue reading U.S., China Grapple Over Dominance in Critical Technologies

Chinese Company Looks to Buy U.S. Money-Transfer Provider

Ant Financial Services Group, China’s largest online-payments company, has announced an $880 million deal to acquire Dallas-based money-transfer provider MoneyGram International. Ant Financial split off from Alibaba Group Holding Ltd. in 2011 and is controlled by Alibaba founder Jack Ma. “With the deal, Ant Financial would gain a large footprint and a brand name in the U.S. and expand its global money-transfer business, ultimately bringing it into closer competition with PayPal” and others, reports The Wall Street Journal. However, the deal could be scrutinized by the new presidential administration as global competition is being called into question, despite Donald Trump’s recent discussions with Ma to help create jobs. Continue reading Chinese Company Looks to Buy U.S. Money-Transfer Provider