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GCBD didn't nationalize Apple in PRC, it's data soverignty requirement same way TikTok was coerced/pressured to moved US data to Oracle US servers. Legal minuti
by dirtyid 4y ago
GCBD didn't nationalize Apple in PRC, it's data soverignty requirement same way TikTok was coerced/pressured to moved US data to Oracle US servers. Legal minutiae matterse less and less when outcomes consistently comparable. In terms of differing market environment, TikTok/Bytedance was one Trump EO away from being force sold to US companies (actual nationalization), which is more aggregious than PRC joint venture scheme that's at least upfront about requirements foreign companies operating in PRC. Apple didn't have to take GCBD deal, they wanted cloud business in PRC to keep selling iproducts. Meanwhile TikTok is bending backwards to follow US laws and still subject to various shenanigans according to changing admin whims. Functionally, it's not substantively different, US have alleged "better" laws, but also better lawfare to circumvent said laws.
IMO this is just reality of mediating "strategic" foreign companies operating domestically, especially from "adversarial" countries. Set legal compliance onerously high and hope they leave. Western platforms left PRC because they couldn't stomach the filtering requriements that every PRC company has to shoulder. And when they finally adopted improve moderation due to requirements/pressure in their host country, they tried to get back into the PRC market. Meanwhile TikTok is sticking around US because Douyin survived burdens of PRC regulatory environment so what's another difficult market. Both markets are difficult, TikTok just better at playing ball in such enviroments. FB/Google can't even control their own employees from sabotaging their return to PRC.
- kube-system 4y agoGCBD is nationalized iCloud. It was founded by the Guizhou government and is wholly state owned and operated. Apple "chose" to agree to this deal with a gun to their head, the only other "option" being that they would be banned from the Chinese market. This isn't just because they have a data sovereignty requirement, but also because they have requirements regarding the sovereignty of a company's corporate governance structure. >TikTok/Bytedance was one Trump EO away from being force sold to US companies (actual nationalization) I'm not defending that idea, but a forced sale is categorically not nationalization. The whole impetus for the idea was that Trump's "eye for an eye" approach regarding what he saw as unfair practices against other US companies that tried to operate there. And in the end, Bytedance challenged it, and it never came to fruition.
- dirtyid 4y agoIs Trump EO not also a gun to bytedance head? Apple could choose to discontinue cloud services and setup backdoor to physical iDevices access which would have made their products not competitive, but they chose to play ball same way Bytedance did. It's both lawfare coercion. It's functionally the same - subborn domestic data within framework accessible by domestic legislation. As for defending either idea, I think it's fine, everyone watches out for their interest including putting guns to heads.
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- kube-system 4y agoNo, because EOs do not hold ultimate power in the US. Bytedance also had the (quite realistic) option to challenge the executive through the US's independent judiciary. Ultimately, they took this option and they were successful, and they maintain ownership of TikTok assets in the US to this day. There aren't any functional counterparts to these checks on power in China that would have been relevant to Apple/GBCD. There's no independent judiciary or alternative ruling party.
- dirtyid 4y agoIs Trump EO not also a gun to bytedance head? Apple could choose to discontinue cloud services and setup backdoor to physical iDevices access which would have made their products not competitive, but they chose to play ball same way Bytedance did. It's both lawfare coercion. It's functionally the same - subborn domestic data within framework accessible by domestic legislation. As for defending either idea, I think it's fine, everyone watches out for their interest including putting guns to heads.