The Chinese language authorities has taken stakes in Chinese language entities owned by tech firms ByteDance and Sina Weibo, company data confirmed, amid a widening regulatory crackdown on the trade.
Information of the stakes and the board seat was first reported by The Info on Monday.
WangTouZhongWen (Beijing) Know-how, which is owned by three Chinese language state entities together with a fund backed by China’s major Web watchdog, has a 1 p.c stake in Beijing ByteDance Know-how, in line with shareholder knowledge from the Nationwide Enterprise Credit score Info Publicity System.
The stake offers Beijing a board seat on the subsidiary which holds a few of the enterprise licenses overlaying Douyin and Toutiao, a few of ByteDance’s hottest home apps, a supply conversant in the matter mentioned.
It doesn’t give not give the Chinese language authorities any stake within the agency’s hit brief video app TikTok, the supply mentioned. TikTok isn’t out there in China.
The Chinese language subsidiary “solely pertains to a few of ByteDance’s China-market video and knowledge platforms, and holds a few of the licenses they require to function underneath native legislation,” a ByteDance spokesperson advised Reuters on Monday.
An affiliate, WangTouTongDa (Beijing) Know-how, equally holds a 1 p.c stake in Beijing Weimeng Know-how, Weibo’s major home subsidiary, in line with a separate authorities knowledge report and filings it made to the US securities regulator.
Weibo didn’t instantly reply to a request for remark. Within the SEC submitting, it mentioned its unit acquired the funding from WangTouTongDa in April 2020 and that WangTouTongDa (Beijing) Know-how had the proper to nominate a director to Weiming’s three-member board.
Company info app Tianyancha mentioned the ByteDance unit stake switch was registered on April 30, 2021.
Though Chinese language regulators have clamped down on a variety of sectors, tech has are available for a few of the harshest measures thus far.
Regulators say they’re involved about points starting from its know-how giants’ market energy to their administration of person knowledge, and have launched antitrust probes, cancelled offers and revealed new steering for the sector.
WangTouZhongWen (Beijing) Know-how is co-owned by the China Web Funding Fund, a China Nationwide Radio subsidiary and the Beijing Cultural Funding Growth Group, its firm registration submitting confirmed.
The China Web Funding Fund, which was established by the Our on-line world Administration of China and the nation’s finance ministry, absolutely owns WangTouTongDa (Beijing) Know-how.
© Thomson Reuters 2021