The US House of Representatives passed a bill. It might ban TikTok in America. The bill tells ByteDance, TikTok’s parent company, to sell its stake. If they don’t, TikTok could be blocked in the US. The bill needs Senate approval and the president’s signature. Lawmakers worry about China’s control over TikTok. ByteDance, founded in 2012, owns TikTok.
A company from Beijing with offices worldwide might face issues if a bill passes in the US Senate. President Biden plans to sign it. This could cause tension with China. ByteDance, the firm in question, may need China’s approval to sell its assets. China opposes this. The US worries about Chinese control over American news platforms.
Chinese companies must share data with their government when asked. Mike Gallagher, a politician from Wisconsin, helped write the bill. He thinks it’s risky for a Chinese-owned company to control American news. This situation may lead to diplomatic problems between the US and China.
TikTok Company Viewpoint
TikTok says it’s keeping data safe from China, but an investigation showed data sharing still happens. CEO Shou Zi Chew promises security. If a bill passes, TikTok could be banned in the US. This could hurt American jobs. The Wall Street Journal found data leaks between TikTok US and ByteDance China. This included accessing a journalist’s data. It’s a big concern.
Ahead of the vote, Hakeem Jeffries, the top Democrat in the House, supported the bill. He thinks it will help keep TikTok user data safe. Senate Majority Leader Chuck Schumer will review the bill next. But it’s unclear if it will pass because Donald Trump, a former president, spoke against it.
He changed his mind after meeting with a Republican donor who has a stake in ByteDance. Some House members, like Marjorie Taylor Greene, also oppose the bill. They worry it could force other companies to sell themselves to protect US data.
Some Democrats worry that banning TikTok could upset young voters. But Senate intelligence committee leaders support the House vote. Mark Warner and Marco Rubio aim to pass the bill. They fear TikTok’s ties to China could threaten national security.
Tiktok Influencers Reaction
Outside the White House on Wednesday, a few people protested against the bill. Content creator Mona Swain, 23, said her TikTok earnings were helping her family. “It’s really scary to lose work,” Ms. Swain told Reuters.
The Chinese foreign ministry’s spokesperson criticized the US. “Bullying behavior disrupts companies’ business,” the spokesperson said. But White House Spokesperson Karine Jean Pierre defended the bill. She said it aimed to prevent major tech platforms from being misused.
ByteDance may sell its stake in TikTok, but it’s unclear if competitors have enough money to buy it. Before, the app was valued at $268bn, scaring off some investors. In 2020, when the Trump administration ordered a sale, big US companies explored bids, valuing it at $50bn.
Microsoft lost to a team led by Walmart and Oracle due to legal issues. TikTok’s reach and ad revenue have grown. This year, it’s expected to make $8.66bn in ad revenue in the US, up from less than $1bn in 2020.