There are forecasts that the technology war between the United States and China will intensify next year. At the center is Donald Trump, the president-elect, who has positioned 'TikTok' as a savior. The Biden administration passed the 'TikTok Ban Law,' pressuring TikTok on the grounds that it could be used as a propaganda tool by the Chinese government and a means of personal data theft. However, since the president-elect Trump has requested a suspension of this law, Chinese tech corporations are closely monitoring the results.
◇ Trump speeds up 'saving TikTok'... 'Please halt the law's effects'
According to foreign media on the 30th, Trump submitted an opinion to the U.S. Supreme Court requesting a suspension of the TikTok Ban Law. Trump's attorney, John Sauer, noted in the opinion, "We respectfully request that the court consider pausing the effect of the mandated sale deadline (January 19, 2025) while it considers the merits of the case." This is interpreted as an attempt by the Trump administration to directly scrutinize the TikTok Ban Law since taking office.
The TikTok Ban Law contains provisions that pressure TikTok's parent company, China's ByteDance, to sell its business in the U.S., and it is set to take effect on the 19th, just before the Trump administration takes office. The U.S. Supreme Court is scheduled to begin hearings on TikTok's appeal against the TikTok Ban Law on the 10th of next month, arguing that it violates freedom of expression.
The reason Trump is trying to save TikTok in the U.S. is that TikTok played a crucial role in his election. He attempted to ban TikTok during his first term. However, in March of this year, he stated, "Banning TikTok will anger the youth," rallying young voters. Following that, on the 16th, he started the 'TikTok rescue' by meeting with TikTok's CEO Shouzi Chew at Mar-a-Lago in Florida.
◇ "If TikTok is banned, it will hit Chinese corporations from Temu to AI companies"
The IT industry believes that if the TikTok Ban Law remains, Chinese tech corporations will struggle to establish a foothold in the U.S. Bloomberg noted in a column that "China's most successful international application is heading toward unprecedented U.S. banning measures, and the upcoming trade war will worsen the already fierce technological competition between Washington and Beijing." It also projected that applications developed by Chinese artificial intelligence startups, including the e-commerce platform Temu, which is already expanding in the U.S., would be impacted in the American market.
Chinese startups are actively developing AI technologies with dreams of entering the U.S. market, but the TikTok Ban Law is expected to hinder their efforts. The industry sees well-funded AI startups like Moonshot, MiniMax, Zhipu, Baichuan, 01.AI, and StepFun looking for opportunities in the profitable U.S. market. These startups are being highlighted as 'six little dragons' in the United States.
MiniMax, which has already received investments from Alibaba and Tencent, has captured the attention of American teenagers with its avatar chatbot app 'Talkie.' According to the market research firm Sensor Tower, Talkie ranked 12th in global downloads from January to August this year. The revenue is expected to reach $70 million (about 100 billion won) this year. Moonshot is also emerging as a counterweight to American AI companies after receiving 1 trillion won from Alibaba.
The Chinese government is also supporting the business expansion of its startups. China demanded Apple incorporate Chinese AI technology as a condition for selling iPhones in the country. Apple has been negotiating to install its own AI system, Apple Intelligence, in Chinese iPhones. CEO Tim Cook has visited China three times this year alone. As China accounts for 17% of Apple's overall sales, the company cannot afford to abandon it. Currently, Apple is reported to be in negotiations with several Chinese corporations including Baidu, ByteDance, and Moonshot.
Jack Clark, co-founder of the American AI company Anthropic, wrote in his blog, "Chinese products, just like electric vehicles, drones, and other technologies, will play a crucial role in AI models."