U.S. President Donald Trump signed an executive order last week that would effectively ban TickTock unless the app is sold to a U.S. buyer by mid-September. Here’s what you need to know to speed up what is happening and what it means.
What is Tiktok and what is its relationship with China?
The video-sharing application Tiktok was created and is owned by the Chinese company Bytens. Appreciated for its ability to create viral sensations and predict user preferences through artificial intelligence algorithms, it has become a growing force in applications and calculations in the US music industry, created by Jane Z as a choice, helping artists like Lil Nass X launch careers. By
Tikitok emerged in the United States through a 2017 deal where ByteDance bought the Shanghai-headquartered lip-syncing app Musical.li. BitDance merged with its own similar app Devine for the Chinese market and renamed it Ticket in 2018. The U.S. Committee on Foreign Investment (CFIUS) has been reviewing key acquisition deals for potential threats to U.S. national security since last year.
In light of such concerns, Tiktok has taken steps to distance itself from its Chinese origins. The company has made the app unavailable in China to keep international users away from Chinese censorship laws. (Instead, BitDance operates Dwayne as a highly censored twin of TickTock)) Beijing recently strictly banned freedom there after Hong Kong enacted a controversial national security law, TickTock was completely out of the market in July.
Tiktok tried to separate its management team from Dwayne, hiring former Disney executive Kevin Mayer as CEO and going to store user data in the US and Singapore instead of mainland China.
TickTock’s huge success abroad has made BitDance the first Chinese technology company with a product to reach a global audience. Bytens is currently the most valuable technology startup in the world, valued at more than 100 100 billion. Despite its growing footprint abroad, it still earns most of its money in China. In 2019, ByteDance made a net profit of more than 3 3 billion, earning more than 17 17 billion per Bloomberg, and 67% of that came from ad sales to its major Chinese applications, including Dion.
What action has Trump taken against TickTock and why?
For Trump, taking a hard line on China was seen as the focus of his re-election campaign.
Last week, he signed an executive order that would force Tiktok to sell to a US company or ban it from the country, issuing another similar order against Tencent-owned Chinese app WeChat.
Trump cited the app’s relationship with China as a threat to national security and information privacy, saying its data collection on U.S. citizens was “potentially” [allow] China will track the locations of federal employees and contractors, create dossiers of personal information for blackmail, and conduct corporate intelligence. “
Bytens will now have to find a buyer for the tick before September 21 or pull it out of the most profitable market in the United States.
What does Trump’s tick-tock ban mean? What will be the effect?
The executive order states that “any transaction” between a U.S. citizen and BitDance will be prohibited within 45 days of its issuance. It is unknown at this time what he will do after leaving the post. The order called on the US Secretary of Commerce, billionaire financier Wilbur Ross, to determine the extent of the sanctions.
Commentators have speculated that Apple and Google’s U.S. app stores will likely have to pull ticks off the digital shelf and U.S. advertisers will have to sever ties with the app. Eventually, being unable to publish software updates, the application will stop working on American smartphones.
If this version of the order remains unchanged by U.S. courts, violating it could result in a fine of up to 300 300,000 per violation, and even a criminal case.
The Trump administration’s unprecedented move to ban applications like TickTock has triggered long-term technology strategy trade between the United States and China. The United States has generally achieved an open Internet and an open business environment for the development and growth of technology companies. China claims sovereignty to censor web access, which means technologists like Google, Facebook and YouTube do not work in the country.
By banning apps with connections to China, Trump is taking a page outside of China’s own playbook, potentially paving the way for other countries to block U.S. companies for the same reason.
Does the tick pose a legitimate threat to the national security of the United States?
ByteDance also relies heavily on user data to make its products more effective, like American technology companies like Facebook. While the issue of control of technology companies and such reuse of personal information is highly competitive in the United States, it is the relationship between Chinese politics and private business that raises unique questions for Tiktok and other Chinese companies.
At the request of China’s 2017 National Intelligence Act, all Chinese agencies are required to cooperate in government intelligence services. Under the law, if the ruling Communist Party asks ByteDance to hand over U.S. user data to it for political reasons, the organization cannot refuse if it wants to continue its core activities in China.
Chinese authorities make media companies like Bytens responsible for censoring content on their platforms. During the latest fall, Tikantok came under fire after censoring content abroad that angered Beijing, such as the Tiananmen Square protest or posts related to Tibetan independence. ByteDance says the old censorship rules have since been phased out for overseas markets, but concerns have been raised about how the content is disseminated – or buried, such as the LGBTQ issue or new examples of censorship perceived in China as human rights.
There is no evidence in the United States that BitDance TickTock has shared US user data with Chinese authorities, and the company has repeatedly denied any such allegations.
Although Tiktok recently began recruiting lobbyists to hear his case in Washington, distrust of his inevitable relationship with the Communist Party has not been shaken. Last week, the U.S. Senate unanimously approved a bill banning Tiktok from using government-provided devices.
The country’s information ministry said that in June, Tikitok was one of about 20 Chinese applications banned in India that posed a threat to national security. The move comes days after a deadly border clash with China.
What is the reaction of Tiktok and Bitdance to Trump’s executive order?
Tiktok said last Friday that it was “shocked” by Trump’s sanctions. An NPR report, citing the source of the sanctions, said a federal lawsuit against the Trump administration over the sanctions was being planned by Tuesday.
The lawsuit would probably argue that Trump’s move was unconstitutional because it did not follow due process in giving the agency a chance to respond to the allegations, as well as the baseless national security concerns cited.
ByteDance has issued a Chinese-language statement reaffirming its commitment to go and stay worldwide. Reporter The company faced “all sorts of complex and unimaginable difficulties” in the process of expanding abroad, including Facebook’s culture clash, exciting geopolitics, and “theft incidents and smirks,” but it has continued to grow our investment in global markets. “
What is the response of China?
Chinese public opinion has been divided between Trump and BiteDance founder Zhang Yiming as victims of unfair treatment and those who oppose selling the company out of national pride. On social media, voice users have identified Zhang as a “traitor” for committing suicide under the pressure of US sales.
China’s foreign ministry sharply reprimanded the Trick administration for targeting the ticket, while the country’s state-run Xinhua news agency equated the executive order with “modern piracy.”
Bytens, however, unlike telecom equipment maker Huawei, does not strongly criticize Beijing in the interests of the Communist Party, saying that Beijing will go the way of security. Analysts say Beijing is wary of taking any action that it thinks will interfere with the upcoming U.S. election. Meanwhile, when it comes to tight-for-tat revenge, Beijing rarely threatens or can. In addition to Microsoft, most of the major technology companies in the United States have already been banned in China
Which US company can buy Tiktok? What is the current status of the discussion?
So far Microsoft has emerged as the top potential bidder for Tic Tac Toe and is still the first runner to buy the app’s activities in the United States, Canada, Australia and New Zealand.
Twitter has also discussed merging with TickTock and other investors are reportedly interested. But the problem with Twitter is that there is no cash to buy alone. The U.S. platform has a market cap of ২ 29 billion, while TickTock is valued at $ 15 billion to 50 50 billion.
Any potential sale of tick, however, will be complicated. Outside of legal developments in defiance of Trump’s executive order, the new owner must meet the requirements of U.S. officials that Tickot has no contact with the Chinese government. There is a technical problem separating TickTock from Code Divine because the two applications share common inclusions.
Release: Diversity Funded from Tiktak’s Creative Learning Fund to create content for the platform.