The United States has told Bytedance, the company that owns the popular social media app TikTok, that either its Chinese owners divest their stake, or face a ban in the country.
This is the second serious attempt to ban the video app. Republican President Donald Trump tried to ban TikTok in 2020 but was blocked by US courts.
According to a report first published in Wall Street Journal, US President Joe Biden’s administration wants ByteDance to divest itself of TikTok to create a clear break from China. The newspaper said the Committee on Foreign Investments in the United States (CFIUS), which oversees national security risks, unanimously recommended the divestment.
ByteDance confirmed that 60 percent of its shares are owned by global investors, 20 percent by employees and the rest 20 percent by its founders.
Video-sharing social networking service later confirmed to several media outlets that CFIUS had contacted the company. The company declined to discuss specifics of the US government’s request, including details around its timing.
TikTok spokesperson Brooke Oberwetter told Reuters: “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.”
Another spokesperson, Maureen Shanahan, said in a statement to CNN: “The best way to address concerns about national security is with the transparent, US-based protection of US user data and systems, with robust third-party monitoring, vetting, and verification, which we are already implementing.”
Last month, the White House ordered all government agencies to ensure they do not have TikTok on federal devices and systems within 30 days.
TikTok Chief Executive Shou Zi Chew is due to appear before the US Congress next week. TikTok and CFIUS have been negotiating for more than two years on data security requirements and the company said it has spent more than $1.5 billion on rigorous data security efforts and rejects spying allegations.
Follow us on
