China Prefers To Shut Down TikTok Than To Sell It To United States
Back in August, President Donald Trump signed an orderÂ banning TikTokÂ from the United States. The only option the social network has for it work in the United States is to sell the Chinese application to an American company.
Since the signing of Trump’s order, TikTok has been in talks with firms like Microsoft. The US President ordered that the deal should be completed by September 20.
According to Reuters on Friday, despite ongoing negotiations, officials in Beijing believe the forced sale would make bothÂ ByteDanceÂ and the Chinese government appear to be underdog opponents.
Sources told the agency that China is considering using technology export restrictions to delay any decision. TikTok, in turn, told Reuters that the company did not notice the pressure from Beijing.
When asked by reporters about TikTok and the upcoming ban, Chinese Foreign Ministry spokesman Zhao Lijian said Trump is abusing the concept of national security to oppress foreign companies.
In August, TikTokÂ filed a lawsuit with the Trump administration, citing a lack of due process. Also a couple of days ago, rumors began to surface that ByteDance was in talks with the US government to avoid a full sale.
Despite alternative measures, ByteDance is still in talks with US companies for a sale. Some likely candidates include Oracle, or the Microsoft-Walmart partnership.
TikTok Revenue Dropped By 14% in August, Yet Still Profitable
According to the latest statistics from Sensor Tower, TikTok’s August global revenue fell a lot from the previous month. According to the report, despite the fall, TikTok is still the world’s highest non-gaming app. The data shows that TikTok’s total revenue in the Apple Store and Google Store exceed $88.1 million in August. This is a 14% decrease from the previous month’s $102 million. The figures for the application from April to June this year are $78 million, $95.7 million, and $90.7 million respectively.
In addition, about 85% of TikTok’s August revenue came from China (TikTok), while revenue from the United States accounts for only 7.8% of the total. Furthermore, the Turkish market accounts for about 1.4%.
TikTok’s market share in the US is also shrinking significantly due to the US ban. In January this year, TikTok accounted for about 76% of installations, and the remaining apps in the top 5 accounted for 24% of total installations. However, by August, the market share of Bytedance’s four biggest competitors has climbed to 44%, while TikTok’s market share shrank by 20%.
Currently, TikTok’s main competing apps in the US market are Triller and Likee. The two apps have been among the top apps in the US since January this year. Among them, Triller has won the presence of US President Trump.