The TikTok office in Culver City, Los Angeles. The Chinese company is caught between two powerful governments. AFP
The TikTok office in Culver City, Los Angeles. The Chinese company is caught between two powerful governments. AFP
The TikTok office in Culver City, Los Angeles. The Chinese company is caught between two powerful governments. AFP
The TikTok office in Culver City, Los Angeles. The Chinese company is caught between two powerful governments. AFP

TikTok is learning how to do business in a divided world


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Kevin Mayer has stepped down as chief executive of TikTok just months into the top job after US President Donald Trump vowed to shut down the short-video app unless it sells its US business to an American firm in 90 days. Walmart, one of the world's largest retailers, has joined fellow US companies Oracle, Microsoft and Twitter in their desire to acquire this crown jewel at a healthy discount, with Walmart looking to bolster its e-commerce business through live-streaming on the TikTok app.

The appointment of Mr Mayer, a former Disney executive, as the all-American public face of TikTok was a way for a company with Chinese roots to mediate with the US, which accuses TikTok of threatening its national security. Clearly, Mr Mayer was biting off more than he could chew.

But if TikTok's time is running out in America, it will not go down without a fight. Last week, the company sued the Trump administration over an executive order blocking it in the US – a move that the company's leadership argues was politically motivated and without due process.

TikTok’s hardiness has been nothing short of astounding. The unfolding drama is shaping up to be a classic case study on crisis management. There are key lessons that observers can take from the TikTok fallout, which could have big implications for the strategy of big tech.

The first relates to the company's oracular anticipation of a crisis. Amid rising tensions between Washington and Beijing, TikTok has been shifting activities overseas, storing user data in servers in the US and Singapore. That lets it boldly claim that all of its data centres are located outside China, and therefore none of its data is subject to Chinese law. This is important because at the heart of the American crackdown on TikTok – and other Chinese internet giants like Tencent's WeChat – are perceived threats to US economic and national security.

These apps capture vast data about US citizens (email addresses, phone numbers, even GPS co-ordinates), which Washington argues creates a risk that Beijing could demand access to personal information for espionage purposes. Legally, this is a grey area, but the allegation is that Chinese executives are expected to appease the ruling Communist Party.

TikTok’s parent company, ByteDance, denies this accusation. The data simply feeds its powerful advertising machine, it argues. As if to insist further upon its neutrality, it is opening a $500 million data centre in Ireland, placing the information generated by European users out of Beijing’s reach. However, back in China, ByteDance is coming under fire for appeasing the US amid increasingly frosty relations with Washington.

At the heart of the American crackdown on Tencent’s WeChat are perceived threats to US economic and national security. Reuters
At the heart of the American crackdown on Tencent’s WeChat are perceived threats to US economic and national security. Reuters

Not every company is caught up in a technology battle between two world superpowers. But in order to be successful, executives of all stripes will need to keep a finger on the pulse of political sentiment, and shift activities quickly before the political tide turns, by moving out of uncertain markets and into more stable ones.

Another lesson from the TikTok crisis, therefore, is the importance of separating research and development efforts across regions. Even though TikTok says it already stores user data outside China, ByteDance and its China-based engineers are the ones writing the code on which the TikTok app runs.

Herein lies the key point of contention with the US. The fact that TikTok is exporting technologies has – rightly or wrongly – aroused suspicion in America. Although the company insists that it limits access to US users’ personal data, its servers overseas are still managed by engineers based in China.

If TikTok is to survive in the US, it will need its own engineering team in America. And indeed, the company has over the past year been transferring some product managers from China to the US and beefed up hiring there.

Kevin Mayer, TikTok’s outgoing chief executive. His appointment in May was seen as a move to boost the app's American credentials. AFP
Kevin Mayer, TikTok’s outgoing chief executive. His appointment in May was seen as a move to boost the app's American credentials. AFP

With tensions rising between Beijing and Washington, other global technology companies may come under pressure to “wall off” their research and development activities in the world’s two largest economies. This suggests that building one product in one country, no matter how great it is, won’t guarantee global success. For that, tech companies may need to decentralise everything from R&D to product development. Technology is about to become a lot more localised.

This was not the role that Mr Mayer signed up for, especially after TikTok was banned in India, too, with the government there also citing national security. If technology companies are to successfully globalise, they will need to seriously consider decoupling their operations in an increasingly protectionist world. For TikTok, the clock is ticking.

Howard Yu is the LEGO professor of management and innovation at the Institute for Management Development (IMD) in Switzerland

ANDROID%20VERSION%20NAMES%2C%20IN%20ORDER
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WITHIN%20SAND
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RESULTS

6.30pm Al Maktoum Challenge Round-1 Group One (PA) US$65,000 (Dirt) 1,600m

Winner RB Money To Burn, Fabrice Veron (jockey), Eric Lemartinel (trainer).

7.05pm Handicap (TB) $175,000 (Turf) 1,200m

Winner Ekhtiyaar, Jim Crowley, Doug Watson.

7.40pm UAE 2000 Guineas Trial Conditions (TB) $100,000 (D) 1,600m

Winner Commanding, Richard Mullen, Satish Seemar.

8.15pm Singspiel Stakes Group Two (TB) $250,000 (T) 1,800m

Winner Benbatl, Christophe Soumillon, Saeed bin Suroor.

8.50pm Handicap (TB) $135,000 (T) 1,600m

Winner Zakouski, William Buick, Charlie Appleby.

9.25pm Al Maktoum Challenge Round-1 Group Two (TB) $350,000 (D) 1,600m

Winner Kimbear, Pat Dobbs, Doug Watson.

10pm Dubai Trophy Conditions (TB) $100,000 (T) 1,200m

Winner Platinum Star, Christophe Soumillon, Saeed bin Suroor.

10.35pm Handicap (TB) $135,000 (T) 1,600m

Winner Key Victory, James Doyle, Charlie Appleby.

Company%20Profile
%3Cp%3E%3Cstrong%3ECompany%3A%3C%2Fstrong%3E%20Astra%20Tech%3Cbr%3E%3Cstrong%3EStarted%3A%20%3C%2Fstrong%3EMarch%202022%3Cbr%3E%3Cstrong%3EBased%3A%20%3C%2Fstrong%3EDubai%3Cbr%3E%3Cstrong%3EFounder%3A%20%3C%2Fstrong%3EAbdallah%20Abu%20Sheikh%3Cbr%3E%3Cstrong%3EIndustry%3A%3C%2Fstrong%3E%20technology%20investment%20and%20development%3Cbr%3E%3Cstrong%3EFunding%20size%3A%3C%2Fstrong%3E%20%24500m%3C%2Fp%3E%0A
UAE squad

Esha Oza (captain), Al Maseera Jahangir, Emily Thomas, Heena Hotchandani, Indhuja Nandakumar, Katie Thompson, Lavanya Keny, Mehak Thakur, Michelle Botha, Rinitha Rajith, Samaira Dharnidharka, Siya Gokhale, Sashikala Silva, Suraksha Kotte, Theertha Satish (wicketkeeper) Udeni Kuruppuarachchige, Vaishnave Mahesh.

UAE tour of Zimbabwe

All matches in Bulawayo
Friday, Sept 26 – First ODI
Sunday, Sept 28 – Second ODI
Tuesday, Sept 30 – Third ODI
Thursday, Oct 2 – Fourth ODI
Sunday, Oct 5 – First T20I
Monday, Oct 6 – Second T20I

AndhaDhun

Director: Sriram Raghavan

Producer: Matchbox Pictures, Viacom18

Cast: Ayushmann Khurrana, Tabu, Radhika Apte, Anil Dhawan

Rating: 3.5/5

The%20specs%3A%20Taycan%20Turbo%20GT
%3Cp%3E%3Cstrong%3EEngine%3A%20%3C%2Fstrong%3EDual%20synchronous%20electric%20motors%0D%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E1%2C108hp%0D%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E1%2C340Nm%0D%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3ESingle-speed%20automatic%20(front%20axle)%3B%20two-speed%20transmission%20(rear%20axle)%0D%3Cbr%3E%3Cstrong%3ETouring%20range%3A%20%3C%2Fstrong%3E488-560km%0D%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3EFrom%20Dh928%2C400%0D%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3EOrders%20open%3C%2Fp%3E%0A
Company%20profile
%3Cp%3E%3Cstrong%3ECompany%20name%3A%3C%2Fstrong%3E%20Fasset%0D%3Cbr%3E%3Cstrong%3EStarted%3A%20%3C%2Fstrong%3E2019%0D%3Cbr%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Mohammad%20Raafi%20Hossain%2C%20Daniel%20Ahmed%0D%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Dubai%0D%3Cbr%3E%3Cstrong%3ESector%3A%20%3C%2Fstrong%3EFinTech%0D%3Cbr%3E%3Cstrong%3EInitial%20investment%3A%3C%2Fstrong%3E%20%242.45%20million%0D%3Cbr%3E%3Cstrong%3ECurrent%20number%20of%20staff%3A%3C%2Fstrong%3E%2086%0D%3Cbr%3E%3Cstrong%3EInvestment%20stage%3A%3C%2Fstrong%3E%20Pre-series%20B%0D%3Cbr%3E%3Cstrong%3EInvestors%3A%3C%2Fstrong%3E%20Investcorp%2C%20Liberty%20City%20Ventures%2C%20Fatima%20Gobi%20Ventures%2C%20Primal%20Capital%2C%20Wealthwell%20Ventures%2C%20FHS%20Capital%2C%20VN2%20Capital%2C%20local%20family%20offices%3C%2Fp%3E%0A
Key facilities
  • Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
  • Premier League-standard football pitch
  • 400m Olympic running track
  • NBA-spec basketball court with auditorium
  • 600-seat auditorium
  • Spaces for historical and cultural exploration
  • An elevated football field that doubles as a helipad
  • Specialist robotics and science laboratories
  • AR and VR-enabled learning centres
  • Disruption Lab and Research Centre for developing entrepreneurial skills
Israel Palestine on Swedish TV 1958-1989

Director: Goran Hugo Olsson

Rating: 5/5

Real estate tokenisation project

Dubai launched the pilot phase of its real estate tokenisation project last month.

The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.

Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.

Conflict, drought, famine

Estimates of the number of deaths caused by the famine range from 400,000 to 1 million, according to a document prepared for the UK House of Lords in 2024.
It has been claimed that the policies of the Ethiopian government, which took control after deposing Emperor Haile Selassie in a military-led revolution in 1974, contributed to the scale of the famine.
Dr Miriam Bradley, senior lecturer in humanitarian studies at the University of Manchester, has argued that, by the early 1980s, “several government policies combined to cause, rather than prevent, a famine which lasted from 1983 to 1985. Mengistu’s government imposed Stalinist-model agricultural policies involving forced collectivisation and villagisation [relocation of communities into planned villages].
The West became aware of the catastrophe through a series of BBC News reports by journalist Michael Buerk in October 1984 describing a “biblical famine” and containing graphic images of thousands of people, including children, facing starvation.

Band Aid

Bob Geldof, singer with the Irish rock group The Boomtown Rats, formed Band Aid in response to the horrific images shown in the news broadcasts.
With Midge Ure of the band Ultravox, he wrote the hit charity single Do They Know it’s Christmas in December 1984, featuring a string of high-profile musicians.
Following the single’s success, the idea to stage a rock concert evolved.
Live Aid was a series of simultaneous concerts that took place at Wembley Stadium in London, John F Kennedy Stadium in Philadelphia, the US, and at various other venues across the world.
The combined event was broadcast to an estimated worldwide audience of 1.5 billion.

SQUADS

UAE
Mohammed Naveed (captain), Mohamed Usman (vice-captain), Ashfaq Ahmed, Chirag Suri, Shaiman Anwar, Mohammed Boota, Ghulam Shabber, Imran Haider, Tahir Mughal, Amir Hayat, Zahoor Khan, Qadeer Ahmed, Fahad Nawaz, Abdul Shakoor, Sultan Ahmed, CP Rizwan

Nepal
Paras Khadka (captain), Gyanendra Malla, Dipendra Singh Airee, Pradeep Airee, Binod Bhandari, Avinash Bohara, Sundeep Jora, Sompal Kami, Karan KC, Rohit Paudel, Sandeep Lamichhane, Lalit Rajbanshi, Basant Regmi, Pawan Sarraf, Bhim Sharki, Aarif Sheikh

Lexus LX700h specs

Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor

Power: 464hp at 5,200rpm

Torque: 790Nm from 2,000-3,600rpm

Transmission: 10-speed auto

Fuel consumption: 11.7L/100km

On sale: Now

Price: From Dh590,000

THE BIO

Born: Mukalla, Yemen, 1979

Education: UAE University, Al Ain

Family: Married with two daughters: Asayel, 7, and Sara, 6

Favourite piece of music: Horse Dance by Naseer Shamma

Favourite book: Science and geology

Favourite place to travel to: Washington DC

Best advice you’ve ever been given: If you have a dream, you have to believe it, then you will see it.