The owner of TikTok is pursuing a policy of reducing costs © Shiho Fukada / Bloomberg
ByteDance is withdrawing its financial group as Chinese supervisors step up the unscrupulous monitoring of the country’s technical giants.
The company, which owns a short video program TikTok, said it reviewed and evaluated its various businesses earlier in the year and decided to boost its interest in “reducing investment with fewer synergies”.
Members of the ByteDance financial group will be spread across the board to “promote professional research activities in line with our business”, the company said.
This comes at a time when the Chinese Communist Party’s campaign is aimed at improving the company’s technical giants, such as. Alibaba and Meituan, leaving other companies to take action to curb Beijing’s outrage.
The ByteDance investment team had 50 to 100 employees, not all of whom were given new positions, according to one person who was notified of the redevelopment. The person added that re-allocated members could continue to look for opportunities to earn money or do other well-planned activities in their new businesses.
That’s it recent renovations within the manufacturer TikTok. Last year his chair is the founder Zhang Yiming came down after a geopolitical storm when the US government, led by former President Donald Trump, tried to force the sale of a ByteDance global business segment.
The internet company has invested in launching China in recent years in an effort to find its partner Tencent. Data from ITjuzi shows ByteDance made 76 cents last year, up from 38 last year.
His first acquisition at Shanghai Musical.ly in 2017 for $ 1bn made the backbone of TikTok, but the deal is still there. we are being monitored and the US Foreign Exchange Committee.
On Wednesday, Chinese media reported that ByteDance’s move came as a result of new restrictions imposed by cyberpace regulators that would force major tech companies to seek approval before making money, but later removed the terms of the new rules in their articles. Reuters cited sources confirming the new rules.
“This means more uncertainty about [ByteDance’s] IPO because no one knows [Chinese] The government will also take action against major internet companies, “said a lawyer close to the company.
The lawyer added: “Internet companies are deeply concerned. But if they look for a piece of paper with clear direction, they will not find it. ”
China’s antitrust regulator has strengthened its employees with contract review tools, after previously failing to look at what local companies have done. interested organizations, for fear of unknowingly accepting strict rules that they use to defy foreign currency restrictions.
Anti-monopoly regulators, who have recently elevated their political stance in governments, have gone on a year-long run in conjunction with history and punish companies for refusing to accept previous agreements.
Supervisors paid Tencent a fine of about thirteen contracts, and in March paid one of the ByteDance Rmb500,000 shares for failing to report the money.
The proliferation of major online financial companies has prompted Tencent, a major supporter of many startups, to follow suit. less money way.
The Preparation for shares of ByteDance it was suspended several times, but the company is expected to soon try to register in Hong Kong or New York earlier this year.
