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In the midst of a regulatory assault on the tech industry, the Chinese government has bought interests in Byte Dance and Sina Weibo’s Chinese subsidiaries. The Information broke the story of the stakes and the board seat on Monday. A 1 percent investment in Beijing Byte Dance Technology is held by WangTouZhongWen (Beijing) Technology, which is owned by three Chinese state-owned enterprises, including a fund sponsored by China’s major internet authority.
According to a source familiar with the subject, Beijing will have a board seat at the company that houses some of Byte Dance’s most popular domestic applications, Douyin and Toutiao. ‘TikTok’, a popular short video app owned by the company, is not included in the deal, according to a source. TikTok isn’t available in China, however, it’s available in other countries. The Chinese subsidiary “only relates to some of Byte Dance’s China-market video and information platforms, and holds some of the licenses they require to operate under local law,” a Byte Dance spokesperson said
Weibo did not reply quickly to a request for comment. According to the SEC filing, its unit will receive the investment from WangTouTongDa in April 2020, and WangTouTongDa (Beijing) Technology will have the authority to choose a director to Weiming’s three-member board.
App for corporate information Tianyancha stated that the Byte Dance unit interest transfer occurred on April 30, 2021. Although Chinese regulators have cracked down on a variety of industries, technology has received some of the hardest sanctions yet. China Internet Investment Fund, a China National Radio affiliate, and Beijing Cultural Investment Development Group jointly control WangTouZhongWen (Beijing) Technology, according to the company’s registration form.
WangTouTongDa (Beijing) Technology is completely owned by the China Internet Investment Fund, which was created by the Cyberspace Administration of China and the country’s finance ministry.