Inside ByteDance’s plan to keep away from a US ban


Hello everybody — James right here from Hong Kong. The wrangling over TikTok’s destiny within the US is a giant deal in greenback phrases. However extra necessary nonetheless is what it says about Washington’s stance within the US-China tech conflict. If the most recent proposal (see The Massive Story) is accepted by US authorities, it might sign a softening. The opposite enormous — and controversial — deal this week is SoftBank’s $40bn sale of Arm, the UK chip designer, to Nvidia (see Mercedes’ High 10 and Better of remark).

In different objects, who knew that Tether, a cryptocurrency, is now extra actively traded than the Thai baht or Indonesian rupiah? (Good information). Take a look at too the plan by Mitsubishi Corp and Singapore’s Temasek to construct a high-tech neighborhood close to Indonesia’s capital. For a enjoyable learn, strive Elaine Moore’s piece on display screen time guilt in Silicon Valley (High 10). Take care until subsequent week.

The Massive Story — unique

ByteDance has a brand new components to keep away from a US ban for TikTok. It has proposed to US officers that it locations the worldwide enterprise of TikTok, the favored video streaming app, into a brand new US-headquartered firm with US tech group Oracle as a minority shareholder, write James Fontanella-Khan and Miles Kruppa within the Monetary Occasions.

As a part of the proposal, Oracle can have a stake in the entire of TikTok and never simply its US operations, whereas ByteDance, the Chinese language group that owns the app utilized by hundreds of thousands of youngsters, would be the majority shareholder of the brand new entity.

Key implications: The creation of a brand new US-based entity exhibits how ByteDance is making an attempt to place distance between the corporate’s Chinese language possession and TikTok’s operations — even because it seeks to keep away from the total sale of the app that US President Donald Trump had desired.

Mr Trump had issued an government order setting a September 20 deadline for the sale of TikTok’s US operations, having threatened to ban the video app within the US. It’s unclear whether or not the proposed new possession and governance construction will fulfill his calls for.

Upshot: The proposal seeks to sq. the circle between US insistence on information safety for American customers and ByteDance’s need to maintain management of its highly effective algorithm. American information can be managed and saved within the US to deal with nationwide safety issues there, in response to individuals acquainted with the proposal.

Take a look at right here differing views on TikTok in Asia past China.

Mercedes’ High 10

  1. Runner-up for giant deal of the week is the Nvidia-Arm sale. The FT breaks down the ramifications of what might find yourself because the semiconductor world’s largest-ever deal within the Better of Remark part beneath. For a take a look at what the deal means for Asia — particularly in China — this piece within the Nikkei Asian Assessment is crucial studying.

  2. Yoshihide Suga, Japan’s famously hardworking new prime minister, is shedding little time. “I wish to do work,” he stated on Monday. Amongst objects on his agenda is a need to chop cell phone payments.

  3. You knew that the pandemic has meant increase time for avid gamers. However this unique story from the Nikkei Asian Assessment will let you know simply how good it has been for Japan’s Nintendo. It’s boosting its output of the Change sport console by 20 per cent to 25m items.

  4. I wrote about how giant Chinese language expertise and monetary providers corporations together with Ant Group and Haitong are stepping up their enlargement in Singapore. Tencent can also be reportedly set to maneuver worldwide operations to the Asian finance hub.

  5. SoftBank’s Masayoshi Son has dropped his opposition to a merger between south-east Asia’s Gojek and Seize. That may create the world’s third-biggest ride-hailing firm. Sticking with SoftBank, the Japanese conglomerate has revived discussions about going personal, in response to an FT scoop.

  6. TechCrunch has an attention-grabbing, wide-ranging interview with the chief government of Indian schooling decacorn Byju’s, which has a valuation of almost $11bn.

  7. The FT’s Yuan Yang and Qianer Liu travelled to Dongguan to see if Huawei might reply a tough query: can the Chinese language group proceed making apps for its units when it might not have the ability to proceed making smartphones?

  8. Indonesia’s digitisation drive has attracted investments from international corporations together with SoftBank. The Nikkei Asian Assessment has the story on how Japanese buying and selling home Mitsubishi will accomplice with Singapore’s state-backed investor Temasek to construct a high-tech neighborhood close to Jakarta.

  9. Nanny state? Singapore has teamed up with Apple as a part of a well being programme that gives monetary incentives for finishing weekly exercise targets.

  10. Nothing will get individuals in Silicon Valley going greater than asking about the correct quantity of display screen time for youngsters. A pleasant learn from the FT’s Elaine Moore seems at why display screen habit is handled as an actual affliction. 

When sages converse

  • Adam Segal has a tremendous piece right here on the tech chilly conflict between the US and China. By some estimates, the tussle might value greater than $3.5tn over the following 5 years.

  • Rui Ma and Ying Lu of Tech Buzz China present a nuanced and detailed tackle Ant Group on this podcast. The quantity of little-known context makes it worthwhile pay attention.

  • Right here is an in-depth tackle how China makes use of large information analytics from authors led by Derek Grossman at Rand. Nicely value a learn if that is your space.

Better of remark

Rene Haas, head of the mental property group at Arm Holdings, spent a lot of Monday making an attempt to reassure prospects that the SoftBank-owned chip design firm was not about to show them into second-class residents, writes Richard Waters in Los Angeles. His efforts adopted information the day gone by that SoftBank had agreed to promote the UK firm to Nvidia for as much as $40bn, in what might find yourself because the semiconductor world’s biggest-ever deal.

The deal was tantamount to dropping a bomb in the course of the chip business. Corporations that license Arm’s designs — that are utilized in most smartphone processors and plenty of different units that require chips with decrease energy consumption — are anxious they are going to be “deprived” as soon as the UK group falls beneath the management of considered one of their opponents, Mr Haas admitted.

Arm’s prospects might discover themselves in the back of the queue when making an attempt to get the corporate’s latest designs, stated Mark Lippett, chief government of chip start-up Xmos. “You’ll discover Nvidia would be the first out on to the market with the most recent Arm architectures,” he stated. If it could head off these worries, nonetheless, shopping for Arm might set the stage for Nvidia’s subsequent large act.


South-east Asia’s subsequent potential unicorn — or “soon-icorn” — may be Carousell. The Singapore-based labeled advertisements market has bagged $80m — no small quantity for the area — from a consortium led by South Korea’s Naver. That takes its valuation to greater than $900m.

Carousell co-founder and chief government Quek Siu Rui stated the previous six months “have been difficult” however that there had been an acceleration in ecommerce adoption. The platform permits prospects to promote and purchase vogue, electronics, equipment, furnishings and even Rolexes. It has additionally capitalised on the Marie Kondo “decluttering” pattern as a spot to promote undesirable objects (Ikea furnishings, anybody?) quick.

Carousell started in Singapore in 2012 and is now in eight markets throughout south-east Asia, Taiwan and Hong Kong. It’s backed by Telenor Group, Rakuten Ventures, Naver, Sequoia Capital and Naspers.

Artwork of the deal

  • Bloomberg studies that Alibaba is in talks to speculate $3bn in Seize, partly by shopping for a few of Uber’s stake. There’s loads of attention-grabbing tie-ups that might come from this, together with one with Lazada, Alibaba’s south-east Asia ecommerce platform. What might this imply for a merger with Gojek? Watch this area.

  • China Evergrande New Power Automobile Group plans to lift HK$3.99bn (US$516.1m) by promoting new shares to a bunch of buyers that features Tencent and Jack Ma-backed Yunfeng Capital.

  • Dream Sports activities, the Indian guardian agency of fantasy sports activities app Dream11, has raised $225m in new funding because it builds an “end-to-end sports activities tech firm” on the earth’s second largest web market. Tiger International Administration, TPG Tech Adjacencies (TTAD), ChrysCapital and Footpath Ventures financed the spherical via major and secondary investments.

Good information

Daily transactions by currency

Tether is an rising cryptocurrency issued by a Hong Kong firm, Tether Restricted, and it now has a bigger presence than bitcoin, write Keita Sekiguchi and Kazuya Manabe of Nikkei. Because the chart exhibits, the cryptocurrency has carved out fairly a distinct segment. Tether’s common day by day transactions between January and August have been value at the least $40bn, greater than these carried out in Thai baht or Indonesian rupiah.

Tether is a stablecoin: a brand new sort of cryptocurrency whose worth is mounted towards a sure asset. One Tether coin has the identical worth as one US greenback. By paying $1 to Tether Restricted, a particular person receives one Tether. However, there are issues. Certainly one of them comes from China, which is anxious that individuals are utilizing Tether to smuggle cash in another country.


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