Over the years, foreign ministry spokespersons have made numerous hypocritical statements. Russia’s insistence on seeking peace in Ukraine lacks credibility, while Iran’s denial of involvement in Middle Eastern unrest fails to persuade.
However, China’s official stance hit a new low last week when it complained about the forced sale of TikTok’s social media app, citing concerns about free and fair competition in open markets. This criticism is particularly striking coming from a country that has banned numerous platforms like Facebook, X, and YouTube.
The US would be justified in demanding TikTok’s sale. If the bill passes the Senate, China will be compelled to either open its markets or acknowledge that its multinational companies cannot expand globally. Either outcome would be an improvement over the current state of the blatantly manipulated market.
Should it occur, the impending sale will mark a monumental shift in the social media landscape. With a staggering 1.7 billion global users, ByteDance’s TikTok stands as the most remarkable new internet offering of the past decade. Last week, citing national security concerns, the US House of Representatives deemed it untenable for the company to continue operating under Chinese control within the country.
With an estimated value ranging between $40 billion to $50 billion (£30bn-£40bn), and potentially even higher given the rarity of digital assets of this magnitude, a mandated divestment would stand as the largest deal of the year.
Various scenarios could unfold: a consortium of investors, potentially led by former Treasury Secretary Steve Mnuchin, might take the reins, or tech giants like Amazon, Apple, or Meta (formerly Facebook) could seek ownership if regulatory approval is granted. Regardless of the outcome, the global internet industry will undergo a significant transformation, with TikTok under new American ownership poised to join the ranks of tech titans.
In response, the Chinese government has voiced vehement objections. Spokesperson Wang Wenbin characterized the move as “bullying behaviour” that disrupts normal business operations, undermines investor confidence, and disrupts the international economic and trade order. He warned that such actions would eventually backfire on the United States itself.
That’s one perspective to consider. However, it’s worth noting that the Chinese government’s credibility in accusing others of unfair competition is questionable at best. China maintains a strict regulatory environment where platforms like X (formerly Twitter), YouTube, Facebook, WhatsApp, Google, and Instagram are all inaccessible.
If China truly sought to address concerns about “bullying behaviour” and uphold the “economic and trade order,” it could begin by dismantling the digital barriers that restrict American websites and apps from reaching Chinese users. Such actions would demonstrate a commitment to fostering a more open and equitable digital environment.
The TikTok ruling presents China with a pivotal moment, long overdue and laden with historic significance. It forces the nation to confront a fundamental choice: does it genuinely embrace the principles of free and open markets, in accordance with World Trade Organization regulations, or not?
For years, China has shielded its domestic markets from competition while aggressively bolstering its industrial prowess. This strategy was sustainable when China primarily served as a supplier to Western corporations. However, as its conglomerates increasingly expand into global markets, this approach becomes untenable.
China now faces a critical decision: either it opens its markets to fair competition, beginning with the internet and extending swiftly to finance, media, and pharmaceuticals, or it acknowledges that its corporate giants will encounter barriers in conquering Western markets. In the latter scenario, China may need to divest its overseas units as they grow too influential or risk facing punitive tariffs and quotas.
Both outcomes promise a healthier and more equitable global economy compared to the current one-sided status quo. The Chinese government must grapple with this decision in the coming months, particularly if the TikTok legislation takes effect. Merely dismissing criticism as unfair will not suffice in addressing these complex economic dynamics.
