TikTok shelves plan for global HQ in Britain
The Chinese social media giant TikTok is said to have shelved plans to build its global headquarters in the UK.
It comes amid rising tensions with Beijing after Huawei was banned from Britain’s 5G network and criticism of the Hong Kong security law.
The video-creation and sharing app's parent company ByteDance had been in discussions with the Department for International Trade and Number 10 about creating a worldwide base in London.
But The Sunday Times is reporting that the firm has decided to suspend the plans, which could have created 3,000 jobs, due to the "wider geopolitical context".
The social media giant has hired aggressively across the West this year as part of a strategy to distance itself from its Chinese ownership. It most recently poached Kevin Mayer, a former Walt Disney executive, to be TikTok's CEO.
A statement from TikTok issued to the paper said: "We remain fully committed to investing in London and inspiring creativity and bringing joy to our users around the world."
And a Government spokesperson said: "ByteDance's decision on the location of their global HQ is a commercial decision for the company. "The UK is a fair and open market for investment where it supports UK growth and jobs.”
The news broke after Communist Party officials warned British firms operating in China, including Jaguar Land Rover, BP, and GlaxoSmithKline, they could face retaliation over Boris Johnson’s decision on Huawei.
And there are fears high-profile investment deals in the UK by China such as the Hinkley Point C nuclear power station could also be affected if the breakdown in relations becomes a full-blown economic war.
The Observer said the British government privately told the Chinese technology giant “geopolitical” reasons had been a factor, and the decision could be revisited in the future if there is a change in administration at the White House.
The report is at odds with public statements last week by ministers, who said Huawei had been banned due to new security concerns raised by the National Cyber Security Centre.
