Stock prices of strong US Tik Tok bidders, which includes Oracle, Walmart, & Microsoft, plunged on Monday as China’s action to block technology exports increased tension among investors that Beijing might ban the US deal for the video entertainment app.
China’s new regulation on technology export might need ByteDance’s Tik Tok’s US operations might require approval from Beijing, which can more complicate the already political and forced sale.
Walmart, Oracle, and Microsoft plunged between 1 and 2.5% in early sessions. However, the fall was cushioned after CNBC reported Tik Tok had decided a suitor, with the video app announcing a deal soon.
Meanwhile, China, for the first time in 12 years, reformed the list of technologies restricted for exports, which would now include Tik Tok too, according to Cui Fan, a professor of international trade in China.