The US House of Representatives has approved a significant bill that could potentially result in the banning of TikTok in the United States.
The bill mandates ByteDance, TikTok’s Chinese parent company, to sell its controlling stake within six months, or face the app’s blockade in the US.
Although the bill received overwhelming bipartisan support in the House, it still needs to pass through the Senate and be signed by the president to become law.
Lawmakers have voiced longstanding concerns regarding China’s influence over TikTok, which is owned by ByteDance, a Chinese company established in 2012.
ByteDance, headquartered in Beijing and registered in the Cayman Islands, operates globally with offices in Europe and the US.
Should the bill secure approval in the Senate, President Joe Biden has pledged to sign it, potentially triggering diplomatic tensions with China.
ByteDance would need Chinese government approval for a forced divestiture, a move Beijing has vowed to oppose, warning of consequences for the US.
Mike Gallagher, a Republican co-author of the bill, emphasized the national security risks of having a major social media platform controlled by a company tied to the Chinese Communist Party, citing China’s data-sharing laws affecting Chinese companies.
TikTok has attempted to address regulatory concerns by asserting it has implemented measures to safeguard user data in the US from Chinese oversight.
However, reports suggest data exchange between TikTok in the US and ByteDance in China remains “porous,” fueling apprehensions, especially after incidents involving unauthorized access to user data by ByteDance employees.
Supporters of the bill, including House Democrats like Hakeem Jeffries, argue it’s essential for protecting user data and national security against potential exploitation by foreign adversaries.
Senate Majority Leader Chuck Schumer expressed intent to review the legislation, although its fate in the Senate remains uncertain, especially with former President Donald Trump’s recent opposition to the bill, influenced by discussions with a ByteDance stakeholder.
Nevertheless, leaders of the Senate intelligence committee, Mark Warner and Marco Rubio, welcomed the House’s decision, emphasizing the national security threat posed by TikTok and ByteDance’s ties to the Chinese government.
TikTok has mobilized its user base to lobby Congress against the bill, while supporters of the platform, including content creators and advocates, protested outside the White House, highlighting the app’s significance for their livelihoods and business opportunities.
The Chinese foreign ministry criticized the US for suppressing TikTok without evidence of national security threats, warning of the negative impact on international investment confidence and economic order.
White House spokesperson Karine Jean Pierre defended the bill as a measure to prevent potential exploitation of major technology platforms by foreign entities.
Should ByteDance seek to sell its stake in TikTok, potential buyers in the US abound, although the app’s valuation and anti-monopoly concerns pose challenges.
Notably, the previous attempted sale during the Trump administration faced legal hurdles and did not materialize.
Today, TikTok’s advertising revenue has surged, attracting interest from various potential buyers, though the ultimate success of any deal remains uncertain.
Source-BBC
