New legislation introduced by Senator Marco Rubio would ban transactions through Chinese and Russian apps, as well as other “countries of concern.” TikTok has denied that it poses a threat to U.S. national security and has recently sought to expand its e-commerce operations in the country.
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TikTok is perhaps the most popular Chinese app in overseas markets. But now it is facing a growing political attack from the US with a new bipartisan bill that seeks to ban it, even as its popularity remains high and continues to gain traction with users, advertisers and merchants.
Florida Senator Marco Rubio, who has repeatedly warned of national security risks from the app owned by ByteDance , has introduced a nine-page bill to block all transactions with TikTok in the US as a way to protect Americans. US Representatives Mike Gallagher, Republican of Wisconsin, and Raja Krishnamoorthi, Democrat of Illinois, introduced companion legislation in the House.
The bill comes as some US states, including Utah and Texas, are trying to ban TikTok from government devices, while President Joe Biden's administration is considering a deal that could allow the app to continue operating in the US. FBI Director Christopher Wray told lawmakers last month that TikTok "could be used for influence operations (by China) if they so desire."
In response to the latest bill, a TikTok spokesperson called it a "politically motivated" move that "will do nothing to advance US national security."
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“We will continue to brief members of Congress on the plans developed under the supervision of our country’s top national security agencies — plans that are well underway for the app — to further secure our platform in the United States,” a TikTok spokesperson said.
Douyin, the Chinese version of the app, has 600 million daily active users and has become a major tool influencing public opinion. TikTok operates separately overseas, and ByteDance denies allegations that it could be forced to hand over user data to the Chinese government under local law. Beijing has been relatively quiet about TikTok’s fate in the U.S., but when asked last month about U.S. scrutiny of the app, China’s foreign ministry urged Washington not to mistreat Chinese companies.
When former U.S. President Donald Trump tried to force ByteDance to sell TikTok to American owners two years ago, China introduced a new export regulation that required Beijing’s approval for certain technology transfers, including “recommendation algorithms,” giving itself a de facto veto on any potential TikTok sale.
Mei Xinyu, a researcher at the Chinese Academy of International Trade and Economic Cooperation, said the proposal from U.S. lawmakers cannot “kill” TikTok because the app has already gained huge market share in the West. “You can’t look for trouble and create huge social conflicts,” Mei said.
TikTok has more than 100 million users in the U.S. and a global user base that exceeds 1 billion.
Amid this growing controversy, TikTok is looking for new revenue streams in the U.S. Last month, it quietly launched a new e-commerce feature called TikTok Shop. The company said that 90% of U.S. shoppers “claim they are satisfied with their experience when TikTok was part of their shopping journey.”
If the new Senate bill passes, it could hurt TikTok’s e-commerce plans. As previously written, it would block “all transactions from any social media company in China, Russia, and many other foreign countries of concern or influence,” Rubio’s office said in a statement.
Source: scmp.com
