TikTok has suspended talks to build a global headquarters in the UK as tensions between the two countries escalates, according to a news report.
The Sunday Times newspaper reports that ByteDance, parent company of the video app, had been in talks with officials from the Department for International Trade and with Prime Minister Boris Johnson’s Downing Street office for several months, according the newspaper.
The new base was set to create 3,000 jobs.
The report suggests the fallout from the UK decision to ban Huawei from its next-generation wireless network could have longer term ramifications.
The government is trying to revive Britain’s reputation as a country open for business following its departure from the European Union, while China has warned Johnson it will face consequences if the UK treats it as a “hostile partner.”
Speaking to the Sunday Times a source said ByteDance, which owns TikTok, had suspended its UK headquarters plans because of the “wider geopolitical context”.
A source speaking to the paper said: “The message was that retaliation is coming and that British firms in China are in the firing line.”
