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Online Travel

Trump Administration Orders Shiji to Sell Hotel Tech Firm StayNTouch

Sean O'Neill photo
Sean O'Neill
Stf shiji shiji cco kevin king skift tech forum 2019 stf19

Photo Credit: Kevin King, chief operating officer of Shiji Group (left) spoke to Skift Senior Travel Tech Editor Sean O'Neill at Skift Tech Forum June 2019 in San Francisco. The Trump Administration on Friday demanded that Beijing-based Shiji unwind its acquisition of StayNTouch, the hotel property management system. Skift

Skift Take

This is a highly unusual action. It's unclear why the U.S. government would believe a company would compromise the sensitive personal data of U.S. citizens just because it's based in China.

The Trump Administration on Friday demanded that Beijing Shiji Information Technology, whose international arm is known as Shiji Group, unwind its acquisition of StayNTouch, a maker of hotel operational software. President Donald Trump said the acquisition of the U.S.-based startup might "threaten to impair the national security of the United States." The order didn't explain details of the threat. A spokesperson for Shiji Group gave us this statement Friday afternoon: "Beijing Shiji Information Technology is disappointed by today's Executive Order. We believe President Trump’s decision was incorrect. Shiji is not a threat to U.S. security in any way. The U.S. government did not adequately explain the basis of its decision to us. In fact, Shiji does not access the guest data of StayNTouch Inc.’s customers." "We offered a range of significant proposals to mitigate any concerns the U.S. Government might have, including further restricting access t

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