Chinese Economics Thread


free_6ix9ine

Junior Member
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It is called antitrust of merger and acquisitions. ARM and Nvidia have done a lot of business with China so China has a say in the matter unless ARM and Nvidia wanted to exit China and stop doing business with China.
Dont worry I'm sure ARM architecture will be replaced eventually. RISC-V is a good candidate. Import replacement is the name of the game.
 

Xsizor

Junior Member
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If true,really a d--k move
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Yes it is. But Bytedance atleast would be able to get their money back. That's what is important. Also, Bytedance may restrict the American version to operating within US with its trademark and brand for Global operations (Tiktok) being held by it.

So there'd be three versions :

Douyin (CN, Bytedance maj)
Tiktok Global (Bytedance maj)
Tiktok USA (Bytedance min / Microsoft maj)

So, what the buyer would gain from it would be Tiktok USA and the US market for Tiktok. And that is why Facebook wasn't reported to be interested in it. Facebook would have considered buying Tiktok Global since Facebook reaps a lot of revenue from Global operations.
Microsoft is venturing into services and entertainment, connectivity and Tiktok helps it gain that social media foothold it never had in USA with Tiktok USA.

To be fair, Tiktok is filling the void left by Vine and more importantly Musically. Musical. Ly was a hit in US before tiktok. But tiktok was successful in preserving the brand recognition after Musically was changed to Tiktok.

Selling to Microsoft its US business isn't exactly a bad idea. The money that Bytedance would have to shell out to lobby the trigger happy congressmen, meet all regulations and PR activity esp at a time when China is increasingly painted as the boogeyman, is going to be huge.

Simply put, it's not worth it. What is important is to retain control over the Global brand.
 

caudaceus

New Member
Registered Member
Yes it is. But Bytedance atleast would be able to get their money back. That's what is important. Also, Bytedance may restrict the American version to operating within US with its trademark and brand for Global operations (Tiktok) being held by it.

So there'd be three versions :

Douyin (CN, Bytedance maj)
Tiktok Global (Bytedance maj)
Tiktok USA (Bytedance min / Microsoft maj)

So, what the buyer would gain from it would be Tiktok USA and the US market for Tiktok. And that is why Facebook wasn't reported to be interested in it. Facebook would have considered buying Tiktok Global since Facebook reaps a lot of revenue from Global operations.
Microsoft is venturing into services and entertainment, connectivity and Tiktok helps it gain that social media foothold it never had in USA with Tiktok USA.

To be fair, Tiktok is filling the void left by Vine and more importantly Musically. Musical. Ly was a hit in US before tiktok. But tiktok was successful in preserving the brand recognition after Musically was changed to Tiktok.

Selling to Microsoft its US business isn't exactly a bad idea. The money that Bytedance would have to shell out to lobby the trigger happy congressmen, meet all regulations and PR activity esp at a time when China is increasingly painted as the boogeyman, is going to be huge.

Simply put, it's not worth it. What is important is to retain control over the Global brand.
Sooner or later we are gonna have multiple country operations and HQ. It will not be only the US and China; EU, India, Japan, Korea might ask their fair share of data sovereignty.
 

ZeEa5KPul

Junior Member
Registered Member
Have I missed something? Softbank is a Japanese company, ARM is (or was) British and Nvidia is US-owned. Where does China get a veto on the potential sale?
You've missed plenty. Luckily for you, I'm here to catch you up on what you missed: it's called China's long-arm jurisdiction. The principle is very simple - China applies its laws outside its jurisdiction to advance its interests using its vast market as leverage. In this case, China will apply its anti-trust laws to prevent Nvidia from acquiring ARM, just as it prevented Qualcomm from applying NXP. Hypocritical? Surely, but that's just part of the flex.
 

Xsizor

Junior Member
Registered Member
Sooner or later we are gonna have multiple country operations and HQ. It will not be only the US and China; EU, India, Japan, Korea might ask their fair share of data sovereignty.
They already do ask for Data ownership (through dedicated Data centers at home).
Europe is constantly in a tug of war with American companies like Google and Facebook over this.

I don't see Japan or SK making a struggle though. Because...um.. Respectfully so... They aren't that sovereign.

Europe manages to do it because of its size. Individually, few European companies can demand Data ownership/protection from US companies. (France is an example). United, EU retains strength.

India is another country which may get its demands met. But I think it'd be just one of those carrots that US would throw in front of India to assuage its Global power dreams.
 

Gatekeeper

Captain
Registered Member
You've missed plenty. Luckily for you, I'm here to catch you up on what you missed: it's called China's long-arm jurisdiction. The principle is very simple - China applies its laws outside its jurisdiction to advance its interests using its vast market as leverage. In this case, China will apply its anti-trust laws to prevent Nvidia from acquiring ARM, just as it prevented Qualcomm from applying NXP. Hypocritical? Surely, but that's just part of the flex.
He needs to wake up from his slumber! A blinkered view will not provide 20-20 vision.
 

caudaceus

New Member
Registered Member
They already do ask for Data ownership (through dedicated Data centers at home).
Europe is constantly in a tug of war with American companies like Google and Facebook over this.

I don't see Japan or SK making a struggle though. Because...um.. Respectfully so... They aren't that sovereign.

Europe manages to do it because of its size. Individually, few European companies can demand Data ownership/protection from US companies. (France is an example). United, EU retains strength.

India is another country which may get its demands met. But I think it'd be just one of those carrots that US would throw in front of India to assuage its Global power dreams.
For India, another angle is that this "data sovereignty" is a ploy for Ambani (Reliance/Jio owner) to cement his position as India's tech overlord. Already Google and FB pay "homages" to him.

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ZeEa5KPul

Junior Member
Registered Member
For India, another angle is that this "data sovereignty" is a ploy for Ambani (Reliance/Jio owner) to cement his position as India's tech overlord. Already Google and FB pay "homages" to him.

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To be honest, this upsets me more than it should. China should dominate the Indian market no matter how paltry it is. What little India has, China should take. I hope that the Chinese government takes a hard-edged stance behind the scenes and lets Modi know that if his arbitrary restrictions on Chinese companies aren't lifted, further humiliation awaits him and his government.
 

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