Will China Be Forced to Sell TikTok by the U.S.?

A new legislative bill in the U.S. House of Representatives could force TikTok’s parent company to sell the app due to fears that China’s involvement in data collection could pose a national security threat.

Voting Against ByteDance

Image Credit: Shutterstock / Robert Way

The United States House of Representatives is now set to vote on a bill that would force ByteDance, a Chinese-owned internet company, to sell TikTok.

The Larger Rivalry

Image Credit: Shutterstock / Salivanchuk Semen

This legislative decision is part of a more significant rivalry between the United States and China, stemming from American concerns that TikTok’s Chinese ownership could ultimately lead to a national security threat.

Security Concerns

Image Credit: Shutterstock / Tint Media

American representatives fear that TikTok could pose a national security threat because of the app’s ability to access data outside the app on a user’s phone and its ability to spread disinformation campaigns spearheaded by Beijing.

Bipartisan Support

Image Credit: Shutterstock / Sorapop Udomsri

Currently, this bill has bipartisan support from Republican and Democratic representatives due to these concerns that Bytedance will provide American personal data to the Chinese government.

High-Ranking Officials Support 

Image Credit: Shutterstock / Dzelat

Even high-ranking politicians like FBI Director Christopher A. Wray and Director of National Intelligence Avril Haines have supported this bill, citing these concerns over personal data.

TikTok’s Counterarguments

Speak
Image Credit: Shutterstock / aerogondo2

In response to these allegations, ByteDance argues that these concerns are completely unfounded because TikTok’s ownership structure makes it an international company with investors and board members worldwide.

U.S. Data Storage

Image Credit: Shutterstock / UnderhilStudio

ByteDance also claims to have taken safeguards to protect U.S. user data through domestic storage and operational measures using an American cloud computing firm called Oracle.

The proposed bill currently being debated would require TikTok to be sold to buyers approved by the U.S. government within the next six months.

Relinquishing Control

Image Credit: Shutterstock / Mehaniq

The goal of this sale would be to ensure that ByteDance relinquishes its control over TikTok and the recommendation algorithms.

Stopping the Sale

Image Credit: Shutterstock / New Africa

If the bill passes and ByteDance does not sell the app within the given time frame, legal restrictions will be placed on it to prevent its sale in app stores and web hosting services within the United States.

Forcing the Sale

Image Credit: Shutterstock / fizkes

The legal grounds for the House of Representatives to force Bytedance to sell TikTok is questionable at best, especially when considering their vast user base and high monetary valuation.

Chinese Regulations

Image Credit: Shutterstock / JomNicha

In addition to this legal gray area in America, recent Chinese regulatory actions suggest that Beijing would not approve such a sale, forcing Bytedance to choose between American and Chinese regulations.

Buying TikTok

Image Credit: Shutterstock / XanderSt

If the bill does pass and ByteDance chooses to sell there is also the matter of who the app would be sold to.

The Role of Antitrust Laws

Image Credit: Shutterstock / only_kim

If TikTok were to be sold, the most likely buyer would be other major tech companies, but the Biden administration’s antitrust efforts could potentially block such a purchase and leave few options for the app to be sold to.

Trump’s Support

Image Credit: Shutterstock / Brandon Stivers

Even though the proposed bill has bipartisan support, one noteworthy opponent is actually former president Donald J. Trump, despite his previous stance in favor of such a bill.

An Unfair Advantage

Image Credit: Shutterstock / Gints Ivuskans

Previously, Trump called TikTok a “national security threat,” but since this new bill has been proposed, he has said that such a ban could give competing social media networks like Instagram an unfair advantage.

The Trump Effect

Image Credit: Shutterstock / Salivanchuk Semen

When discussing Trump’s support, Paul Gallant, a policy analyst for TD Cowen, said, “Trump’s opposition is a meaningful new headwind to this bill becoming law. A lot will depend on whether he goes to the mat on this TikTok bill the way he did with the border security bill.”

Free Speech Advocates

Image Credit: Shutterstock / zimmytws

In addition to Trump’s opposition, many free speech advocates have also opposed the bill, claiming that it could inadvertently affect expressive freedoms.

Civil Penalties

Image Credit: Shutterstock / Studio Romantic

If the bill is passed into law, it would then place civil penalties on platforms such as Apple and Google’s app store for distributing over even updating TikTok.

Limiting Distribution

Image Credit: Shutterstock / Salivanchuk Semen

This legislative approach is the Government’s best chance at limiting app distribution since it has few options when directly imposing legal repercussions upon Bytedance.

Biden’s New 401(k) Rule: Employers Frustrated as Retirement Planning Responsibilities Shift

Image Credit: Shutterstock / lev radin

The latest Biden administration rule on 401(k) plans is reshaping how employers manage retirement plans. It’s a complex scenario requiring a fresh understanding of fiduciary duties and provider relationships. This rule aims to protect employees but also imposes new responsibilities on employers. Biden’s New 401(k) Rule: Employers Frustrated as Retirement Planning Responsibilities Shift

Elon Musk: New Immigration Bill ‘Enables Illegals to Vote’

Image Credit: Shutterstock / photosince

Elon Musk is calling for prosecutions after the text for a new senate bill on immigration was released. Musk accused the new bill of “enabling illegals to vote.” Elon Musk: New Immigration Bill ‘Enables Illegals to Vote’

Colorado Officials Reject Sanctuary City Status, Warn Against ‘Dangerous Game’

Image Credit: Shutterstock / Ruben2533

With increasing numbers of migrants arriving in Colorado, public officials have rejected any notion of the state becoming a sanctuary for migrants and asylum seekers. Colorado Officials Reject Sanctuary City Status, Warn Against ‘Dangerous Game’

Disney Challenges DeSantis’ “Don’t Say Gay” Rule With a Hefty Lawsuit

Image Credit: Shutterstock / Andrew Cline

Disney is set to appeal its refusal for a lawsuit against Ron DeSantis, who stripped the company of its rights for disagreeing with the Governor’s views on the teaching of sexual orientation in classrooms. Disney Challenges DeSantis’ “Don’t Say Gay” Rule With a Hefty Lawsuit

Trump on the Attack as 21 Million Americans Flock to Obamacare, Biden Pushes Forward

Image Credit: Shutterstock / Nicole Glass Photography

An unprecedented surge in health plan enrollments has reignited former President Donald Trump’s commitment to dismantling the program should he secure the GOP nomination once again. Trump on the Attack as 21 Million Americans Flock to Obamacare, Biden Pushes Forward

The post Will China Be Forced to Sell TikTok by the U.S.? first appeared on From Frugal to Free.

Featured Image Credit: Shutterstock / Konstantin Savusia.

The content of this article is for informational purposes only and does not constitute or replace professional financial advice.

(Visited 1 times, 1 visits today)