Hello and welcome again to TechCrunch’s China Roundup, a digest of latest occasions shaping the Chinese tech panorama and what they imply to individuals in the remainder of the world. It’s been a really busy final week of October for China’s tech bosses, however first, let’s check out what a few of them are doing within the neck of your woods.
TikTok’s troubles within the U.S.
The problem going through TikTok, a burgeoning Chinese video-sharing app, continues to deepen within the U.S. Lawmakers have lately known as for an investigation into the social community, which is operated by Beijing-based web upstart ByteDance, over considerations that it might censor politically delicate content material and be compelled to show American customers’ information over to the Chinese authorities.
TikTok is arguably the primary Chinese shopper app to have achieved worldwide scale — greater than 1 billion installs by February. It’s carried out so with a group of creators good at churning out snappy, light-hearted movies, extremely localized operations and its acquisition of rival Musical.ly, which took American teenagers by storm. In distinction, WeChat has struggled to construct up a big abroad presence and Alibaba’s fintech affiliate Ant Financial has largely ventured overseas by way of savvy investments.
TikTok denied the American lawmakers’ allegations in an announcement final week, claiming that it shops all U.S. consumer information regionally with backup redundancy in Singapore and that none of its information is topic to Chinese regulation. Shortly after, on November 1, Reuters reported citing sources that the U.S. authorities has begun to probe into ByteDance’s acquisition of Musical.ly and is in talks with the agency about measures it might take to keep away from promoting Musical.ly . ByteDance had no additional remark so as to add past the issued assertion when contacted by TechCrunch.
The new media firm should have seen the warmth coming as U.S.-China tensions escalate in latest instances. In the long run, TikTok may need higher luck increasing in creating international locations alongside China’s Belt and Road Initiative, Beijing’s formidable international infrastructure and funding technique. The app already has a footprint in some 150 international locations with a focus in Asia. India accounted for 44% of its complete installs as of September, adopted by the U.S. at eight%, in line with information analytics agency Sensor Tower.
ByteDance can be hedging its bets by introducing a Slack-like office app and is reportedly advertising and marketing it to enterprises within the U.S. and different overseas international locations. The query is, will ByteDance…