It is reported that the US government has demanded that the Chinese founders of TikTok sell their stake. If TikTok does not comply with the stake sale request, it is a policy to exit TikTok in the United States.
The Wall Street Journal (WSJ) reported on the 15th (local time), citing sources, that the Foreign Investment Review Committee (CFIUS), an agency under the U.S. Treasury that deals with national security threats to foreign investment, recently conveyed this opinion to TikTok.
According to TikTok, 60% of parent company ByteDance’s shares are owned by global investors, 20% by founders and 20% by employees.
TikTok said, “If the goal is to protect national security, the stake sale will not solve the problem. The change in ownership will not impose new restrictions on data flow or access.”
“The best way to address national security concerns is to transparently protect US user data and systems through third-party monitoring, investigations and verification, which we already have in place,” he said.
Previously, TikTok proposed a plan to store US user data in the US by investing US$1.5 billion (about 2 trillion won) to address the national security threat. To this end, it plans to cooperate with Oracle, an American information technology company.
However, hardliners in the United States have still criticized that the Chinese government is not enough, saying that it can hand over user data if requested.
The Joe Biden administration has been negotiating for more than two years over ways to ensure the safety of US user data, but has recently stalled.
It is not known what action the US government will take after the stake sale request. TikTok CEO Zhou Shouzhi will appear before the US House Energy and Commerce Committee next week.
The WSJ evaluated that it meant a policy change by the Biden administration, which had been criticized by the Republican Party for not taking a hardline stance when TikTok’s parent company ByteDance was threatening national security.
Previously, the Donald Trump administration tried to forcefully sell TikTok, citing national security threats, but was blocked by a court. If the US government tries to ban the use of TikTok in the US, the WSJ predicts that it will proceed with legal battles again.
Source: Donga
Mark Jones is a world traveler and journalist for News Rebeat. With a curious mind and a love of adventure, Mark brings a unique perspective to the latest global events and provides in-depth and thought-provoking coverage of the world at large.