Plans to quickly complete a deal between the Chinese parent company of TikTok and suitors for the app’s U.S. operations have been thrown off track as the parties huddled over the weekend to weigh new Chinese restrictions that appear designed to affect a potential sale, according to people familiar with the discussions.
China late on Friday issued new restrictions on the export of artificial-intelligence technology that force ByteDance to slow down talks with companies including Microsoft, Walmart and Oracle.
The talks are far from being scuttled, but the latest developments do make clear that China plans to keep as close a watch on any potential deal as the Trump administration.
The new Chinese restrictions highlight the extent to which TikTok, a breakout social-media hit–especially with younger U.S. users–has been thrust into a geopolitical contest between the U.S. and China over the future of global technology.
China’s move to give the government a say in the outcome is an attempt to level the playing field with the U.S. and could affect other Chinese companies, some of the people said.