China says that "is strongly opposed" to a possible forced sale of TikTok

Hong Kong () — China said it would “strongly oppose” any forced sale of the social network TikTok, in its first direct response to demands by the Biden administration that the app’s Chinese owners sell their share of the company or face a ban on their most important market.

The comments came after TikTok CEO Shou Chew testified before US lawmakers amid mounting scrutiny over the app’s ties to Beijing.

China’s Commerce Ministry said Thursday that a forced sale of TikTok would “severely damage” global investor confidence in the United States.

“If the news [sobre una venta forzada] it is true, China will strongly oppose it,” Shu Jueting, a ministry spokesman, told a news conference in Beijing on Thursday, adding that any potential deal would need Chinese government approval.

“The sale or divestment of TikTok involves the export of technology, and administrative licensing procedures must be done in accordance with Chinese laws and regulations,” he said.

“The Chinese government will make a decision in accordance with the law,” the spokesperson added.

Previously, Beijing did not intervene directly in a possible forced sale. However, as of 2020, it indicated that it wanted to protect Chinese technology by adding recommendation algorithms, which could include those of TikTok, to a list of export-restricted technologies.

On Thursday, Chew, in his first hearing in the US Congress, sought to provide nuanced answers and sought to assuage lawmakers’ concerns about the company and its parent company, Beijing-based Bytedance.

But lawmakers frequently interrupted him and called him evasive. After more than five hours of testimony, the lawmakers expressed deep skepticism about his company’s attempts to protect American user data and ease concerns about its ties to China.

That means there will likely be more calls from Washington to ban TikTok if the company doesn’t separate from its Chinese parent, analysts said.

The Chinese government may have veto power over the sale, based on Shu’s latest response and earlier actions by Beijing.

In December 2022, Chinese officials proposed tightening the rules governing the sale of content-based recommendation algorithms to foreign buyers.

TikTok’s algorithms, which keep users glued to the app, are believed to be the key to its success. Algorithms provide recommendations based on user behavior, driving videos users like and want to watch.

Chinese regulators first added algorithms to the shortlist of technologies in August 2020, when the Trump administration threatened to ban TikTok unless it was sold.

Analysts and legal experts believe that Beijing may ultimately prefer TikTok to leave the US market rather than hand over its algorithm.

— ‘s Brian Fung contributed to this article.