Home Community Insights TikTok Dismisses Calls for Chinese Owners to Sell their Stakes, Says it Won’t Solve the Problem

TikTok Dismisses Calls for Chinese Owners to Sell their Stakes, Says it Won’t Solve the Problem

TikTok Dismisses Calls for Chinese Owners to Sell their Stakes, Says it Won’t Solve the Problem
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TikTok has frowned at the report that the Biden administration was asking its Chinese owners to sell their stakes in the company as a way to erase national security concern that has pitted the popular video-sharing app against the US and its allies.

The Wall Street Journal reported on Wednesday, citing sources familiar the matter, that the Committee on Foreign Investment in the U.S. was threatening to ban the app in the U.S., unless its owners, Beijing-based ByteDance Ltd., divested. TikTok was dismissive of the report on Wednesday, saying that the move won’t solve the problem.

“If protecting national security is the objective, divestment doesn’t solve the problem: a change in ownership would not impose any new restrictions on data flows or access,” TikTok spokesperson Maureen Shanahan said. “The best way to address concerns about national security is with the transparent, U.S.-based protection of U.S. user data and systems, with robust third-party monitoring, vetting, and verification, which we are already implementing.”

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TikTok’s reaction follows the decision of the British government to ban the app on official devices as security concern emanating from its use spreads across the West.

The U.S. leads the campaign against the short-form video app, whose crime is being owned by the Chinese tech giant ByteDance. Late last month, the White House gave all federal agencies 30 days to delete TikTok from all government devices.

The move came around the time FBI Director, Chris Wray, warned that the app could serve as a backdoor for Chinese espionage. Several U.S. states have also restricted the use of TikTok on government-issued devices.

The social media platform has been trying to tame the frenzy, which has escalated like no other time, without success.

While the move to ban TikTok underlines broader tech and economic fight between the U.S. and China, the recent uptick in bans by western countries, deepens the existential threat to the video-sharing app.

The Office of Management and Budget said the ban of TikTok on official devices is a “critical step forward in addressing the risks presented by the app to sensitive government data.”

In December, Congress passed the “No TikTok on Government Devices Act”, which though it allows the use TikTok in certain cases, serves as part of a sweeping government funding package.

The No TikTok on Government Devices Act has been followed by a proposed legislation that would give the Biden administration more power to ban TikTok and other apps seen as threat to national security.

The growing number of Western governments clamping down on TikTok underpins the deteriorating relationship between China and the West.

China has criticized the decision of the U.S. and its allies to prohibit the use of TikTok on government-owned phones, calling it “abuse of power.” But China’s criticism holds no bearing as several U.S. tech companies, including Google, Meta and Twitter, are banned in the Asian country.

TikTok said it has moved its data centers away from China as part of efforts to address U.S. concerns and it is developing security and data privacy plans as part of the Biden administration’s ongoing national security review.

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