China's New Tech Export Controls Could Give Beijing a Say in Tiktok Sale

FILE PHOTO: TikTok logos are seen on smartphones in front of a displayed ByteDance logo in this illustration taken November 27, 2019. REUTERS/Dado Ruvic/Illustration
FILE PHOTO: TikTok logos are seen on smartphones in front of a displayed ByteDance logo in this illustration taken November 27, 2019. REUTERS/Dado Ruvic/Illustration
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China's New Tech Export Controls Could Give Beijing a Say in Tiktok Sale

FILE PHOTO: TikTok logos are seen on smartphones in front of a displayed ByteDance logo in this illustration taken November 27, 2019. REUTERS/Dado Ruvic/Illustration
FILE PHOTO: TikTok logos are seen on smartphones in front of a displayed ByteDance logo in this illustration taken November 27, 2019. REUTERS/Dado Ruvic/Illustration

China’s new rules around tech exports mean ByteDance’s sale of TikTok’s U.S. operations could need Beijing’s approval, a Chinese trade expert told state media, a requirement that would complicate the forced and politically charged divestment.

ByteDance has been ordered by President Donald Trump to divest short video app TikTok - which is challenging the order - in the US amid security concerns over the personal data it handles.

Microsoft Corp (MSFT.O) and Oracle Corp (ORCL.N) are among the suitors for the assets, which also includes TikTok’s Canada, New Zealand and Australia operations.

However, China late on Friday revised a list of technologies that are banned or restricted for export for the first time in 12 years and Cui Fan, a professor of international trade at the University of International Business and Economics in Beijing, said the changes would apply to TikTok, Reuters reported.

“If ByteDance plans to export related technologies, it should go through the licensing procedures,” Cui said in an interview with Xinhua published on Saturday.

China’s Ministry of Commerce added 23 items - including technologies such as personal information push services based on data analysis and artificial intelligence interactive interface technology - to the restricted list.

It can take up to 30 days to obtain preliminary approval to export the technology.

TikTok’s secret weapon is believed to be its recommendation engine that keeps users glued to their screens. This engine, or algorithm, powers TikTok’s “For You” page, which recommends the next video to watch based on an analysis of your behavior.

Cui noted that ByteDance’s development overseas had relied on its domestic technology that provided the core algorithm and said the company may need to transfer software codes or usage rights to the new owner of TikTok from China to overseas.

“Therefore, it is recommended that ByteDance seriously studies the adjusted catalogue and carefully considers whether it is necessary to suspend” negotiations on a sale, he added.



Meta’s Content Moderation Contractor to Cut 2,000 Jobs in Barcelona

The logo of Meta is seen at the entrance of the company's temporary stand ahead of the World Economic Forum (WEF) in Davos, Switzerland January 18, 2025. (Reuters)
The logo of Meta is seen at the entrance of the company's temporary stand ahead of the World Economic Forum (WEF) in Davos, Switzerland January 18, 2025. (Reuters)
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Meta’s Content Moderation Contractor to Cut 2,000 Jobs in Barcelona

The logo of Meta is seen at the entrance of the company's temporary stand ahead of the World Economic Forum (WEF) in Davos, Switzerland January 18, 2025. (Reuters)
The logo of Meta is seen at the entrance of the company's temporary stand ahead of the World Economic Forum (WEF) in Davos, Switzerland January 18, 2025. (Reuters)

Canadian-based tech company Telus sent home as many as 2,000 people from its content moderation center in Barcelona after Facebook owner Meta Platforms severed its contract, local unions CCOO and UGT said.

The company - operating locally as CCC Barcelona Digital Services - emailed its workers on Thursday placing them on gardening leave saying a client warned on April 1 it would suspended services.

The email, which Reuters had access to, did not specify who the client was, but UGT and CCOO said Telus' client was Meta.

One former and one current employee, who requested anonymity as they signed non-disclosure agreements, said the team was moderating content for Meta.

"Our clients are diversifying their presence and transferring their services to other locations," Telus said, adding the contract continued. The company will provide support to all the affected team members during negotiations with the unions.

A Meta spokesperson said the company has moved the services that were being performed from Barcelona to other locations and the company is not reducing its content review efforts.

Meta invested billions and hired thousands of content moderators globally over the years to police sensitive content, but in January it scrapped its US fact-checking program, following the election of President Donald Trump.

It also said it will stop proactively scanning for hate speech and other types of rule-breaking, reviewing such posts only in response to user reports.

Employees were placed on leave, with full salaries but no work to carry out, while Telus negotiates severance with unions, the email sent to workers said.

The company suspended its operations at noon on Thursday and asked employees at work to leave the office, located in Barcelona's landmark Glories tower downtown.

The team in Barcelona included content moderation services in Catalan, Dutch, French, Hebrew, Portuguese and Spanish, according to the former employee.

Other content moderation centers in countries such as Bulgaria, Colombia and Portugal that used to collaborate with the staff in Barcelona, the current employee said, although a Telus spokesperson said some of these centers are run by other companies.