The changes in TikTok and Arm are signs that point to a difficult future
On August 6, when the White House told TikTok that it had 45 days to shut down or find an American buyer, there was a risk that the Chinese-owned video app would disappear from America, angering 100 million users. in the US and causing billions of dollars in losses from investor wealth, writes The Economist.
Now it seems a last minute trick has been found. TikTok has said it will enter into a complex partnership with Oracle, a US tech giant, with the aim of showing that it is more under American influence. A few days ago, US company Nvidia offered $ 40 billion to Arm Holdings, a British-based chip-making firm, sparking a storm in Britain in a bid to stop its tech champion from retreating into America’s trade war. .
These two events are by no means coincidental, they are the first signals that the new era of nationalism will change the way multinational firms run – for the worse.
Both companies overcome geopolitical divisions and are at the heart of the digital economy. TikTok is owned by ByteDance, a Chinese technology company. The White House says it fears that user data is being sent to China, where Big Brother could spy on them, and that the algorithm that selects the videos is vulnerable to Chinese manipulation.
Arm designs are used all over the world, especially in America and China, its two largest markets. The British government worries that such an acquisition would lead to the relocation of core business abroad (in 2016 Arm was bought by SoftBank, a Japanese company, which promised to maintain the firm’s base in Britain by 2021). Another concern is that under US ownership, Arm will no longer be a “neutral” supplier, but will become an instrument of the US government’s sanctions regime.