China won't allow a TikTok 'smash and grab' by US, warns state media

Hong Kong

CHINA'S government won't accept an acquisition of TikTok's US operations by Microsoft and may take action against Washington if a sale is forced, the Beijing-backed China Daily said in its Tuesday editorial.

It's Beijing's strongest defence so far of ByteDance and its viral video phenomenon, which US President Donald Trump threatened to ban unless a deal is struck by Sept 15 to sell TikTok's US business to Microsoft or another US entity. That process is tantamount to officially sanctioned theft, the Communist Party mouthpiece wrote, echoing prominent Beijing-backed media like the Global Times.

"China will by no means accept the 'theft' of a Chinese technology company, and it has plenty of ways to respond if the administration carries out its planned smash and grab," it said, without specifying options.

"With competitiveness now dependent on the ability to collect and use data, it offers an either-or choice of submission or mortal combat in the tech realm."

ByteDance became the world's largest startup thanks to the success abroad of TikTok, which American lawmakers accuse of posing a threat to national security by vacuuming up data. Mr Trump now has the power to potentially cripple ByteDance's prized asset by adding TikTok to the US entity list, which would compel American companies such as Apple and Alphabet's Google to drop the service from their app stores.

The US crackdown has split many in the industry: Some decry the betrayal of values like free speech and capitalism, while others advocate doing whatever it takes to subdue a geopolitical rival and its pivotal tech industry. While the Chinese Ministry of Foreign Affairs has declined to comment on Microsoft's TikTok talks, spokesperson Wang Wenbin reiterated criticism on Tuesday of what he said were Washington's double standards and overreach. BLOOMBERG