China has signaled potential openness to a TikTok ownership deal following recent developments in the United States, marking a shift from its previous stance.

During a press conference at China's Ministry of Foreign Affairs, spokesperson Mao Ning responded to questions about a possible deal with Trump, who proposed 50% US ownership in a joint venture. Ning emphasized TikTok's positive impact on US employment and consumption, calling for a fair business environment.

Key points from China's new position:

• Business operations and acquisitions should be decided independently by companies following market principles
• Any deal involving Chinese companies must comply with Chinese laws and regulations
• This represents a significant shift from China's previous opposition to a forced TikTok sale

Important considerations:

• Chinese regulations still restrict the export of AI technologies, including personalized content recommendation systems
• This restriction would affect TikTok's 'Discover' algorithm in any potential US deal
• TikTok service was briefly interrupted but has been restored following recent legislative actions

The situation remains dynamic, with China's position showing more flexibility while maintaining regulatory requirements that could impact any potential deal structure.

Recent events include the passage of a TikTok ban law in April 2024 and subsequent service restoration, highlighting the ongoing complexity of TikTok's operation in the United States under evolving political and regulatory conditions.

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