According to Reuters, the Biden administration has demanded that TikTok's Chinese owners divest their stakes in the popular video app or face a possible US ban. The move is the most dramatic in a string of recent actions by US officials and legislators who have expressed concern that TikTok's US user data could be passed on to China's government. TikTok, which is owned by ByteDance, has over 100 million US users. It is also the first time that a potential ban on TikTok has been threatened during President Joe Biden's administration. Donald Trump, Biden's predecessor, attempted to ban TikTok in 2020 but was blocked by US courts. According to TikTok spokesperson Brooke Oberwetter, the company recently heard from the US Treasury-led Committee on Foreign Investment in the United States (CFIUS), which demanded that the Chinese owners of the app sell their shares or face a possible US ban of the video app.
The move was first reported by the Wall Street Journal. ByteDance confirmed that global investors own 60% of the company, employees own 20%, and the founders own 20%. On Thursday, China's foreign ministry responded that the US had yet to provide evidence that TikTok posed a threat to national security. According to Ministry spokesperson Wang Wenbin, the United States should stop suppressing such companies. CFIUS, a powerful national security body, recommended that ByteDance divest TikTok in 2020. Under pressure from then-President Trump, ByteDance attempted and failed in late 2020 to finalize a deal with Walmart and Oracle to consolidate TikTok's US assets into a new entity. 'If protecting national security is the goal, divestment does not solve the problem: a change in ownership would not impose any new restrictions on data flows or access,' according to a Tiktok spokesperson.TikTok Chief Executive Shou Zi Chew is due to appear before the US Congress next week. It is not clear if the Chinese government would approve any divestiture and the Chinese Embassy in Washington did not immediately respond to a request for comment.
The White House gave government agencies 30 days last month to ensure that TikTok was not installed on federal devices and systems. More than 30 states in the United States have also prohibited employees from using TikTok on government-owned devices. Because TikTok is popular among millions of young Americans, any ban in the United States would face significant legal challenges and potential political ramifications. TikTok and CFIUS have been negotiating data security requirements for more than two years. TikTok claims to have spent more than $1.5 billion on rigorous data security efforts and denies any allegations of spying. According to TikTok, the 'best way to address concerns about national security is with transparent, US-based protection of US user data and systems, with robust third-party monitoring, vetting, and verification.' Last week, the White House backed legislation sponsored by a dozen senators that would give President Joe Biden the authority to prohibit Chinese-owned TikTok and other foreign-based technologies if they pose a threat to national security. Last week, the White House backed legislation sponsored by a dozen senators that would give President Joe Biden the authority to prohibit Chinese-owned TikTok and other foreign-based technologies if they pose a threat to national security. Meanwhile, Rishi Sunak is expected to prohibit employees from using TikTok on their work phones later today, according to reports. The UK government did not rule out a full TikTok ban due to'security risks' this week.
By Covenantblog
