“We are not an agent of China” – This is how Tiktok wants to save its billion-dollar US business

But Chew faced a rarely closed front on Capitol Hill. Hardly any other topic connects the otherwise hostile Democrats and Republicans as much as a possible ban on Tiktok. Jasmine Enberg, an analyst at research agency Insider Intelligence, said the opinion of US lawmakers “will not change” with the hearing.

Why a ban on Tiktok is imminent in the USA

Tiktok had announced that it wanted to store all user data with the US cloud provider Oracle (“Project Texas”), and the group started a similar initiative in Europe under the name “Project Clover”. But that may not be enough to allay national security concerns, Enberg said. “As long as the app has ties to China, it’s an impossible task.”

Tiktok is owned by Bytedance, a Chinese company headquartered in Singapore. Critics suspect that the Chinese government can access user data such as browsing history and locations. The company denies the allegations. In Washington, there have long been bipartisan concerns that the Chinese government could confiscate American data or spread misinformation.

We want to be transparent and work cooperatively with the US government. Tiktok boss Shou Zi Chew

The reason for concern is Chinese law that requires Chinese companies to share user data with the government. “Absolutely yes,” the FBI director replied a few weeks ago when asked whether China threatened US national security. For example, should China invade Taiwan, it could use algorithms and propaganda to steer world opinion, Wray said.

>> Read also: China’s government is giving tech companies more leeway again

The US government has not yet presented any evidence that China is already actively intervening or collecting data on a large scale. In 2020, then US President Donald Trump announced that he wanted to ban Tiktok, but that never happened. However, the Biden government has noticeably increased the pressure on the company.

All US federal agencies must remove the Chinese app from all devices and systems by the end of March, on orders from the White House. About half of the US states have also issued a Tiktok ban for civil servants. Similar restrictions have been enacted in India, Canada and the European Union.

A far-reaching ban is now threatening from Congress: The House of Representatives is pushing a bill called Data (“The Deterring America’s Technological Adversaries Act”), which would give Biden the power for a complete ban. Such a law would have to be passed by both chambers of Congress and specifically confirmed as a ban by Biden. So far, the President has not commented clearly on this. “I’m not sure,” the president said recently. “Anyway, I know I don’t have Tiktok on my phone.”

At the same time, the so-called Committee on Foreign Investment in the US – known as CFIUS – is considering a US ban on the app – unless its Chinese owners sell their shares to an American company. For more than two years, CFIUS and Bytedance have been negotiating the extent to which Tiktok can continue to be active on the US market.

Tiktok is the voice of “Generation Z”

The pressure on Tiktok is part of a larger anti-China strategy by the US government. The USA had previously banned hardware from the Chinese telecommunications providers Huawei and ZTE in American networks and prohibited their supply of components. According to experts, however, a ban on a Tiktok app would be more complicated, civil rights groups could go to court and argue that freedom of expression was violated.

Tiktok’s strategy now is primarily to highlight its cultural influence via community building, its enormous reach – and its role as a huge market player that the US economy cannot possibly ignore.

According to analysts at eMarketer, the app is expected to generate more than $11 billion in advertising revenue in the US by 2024, far outperforming competitors like Snapchat, Pinterest and Twitter. According to the company, it has more than 150 million monthly active users in the USA. Three years ago there were 100 million users.

In the past few weeks, Tiktok has ramped up its lobbying efforts in Washington enormously. Large-scale advertising posters for the app are hanging in the US capital, CEO Chew recently gave several interviews and called on users to contact politicians. “Nearly half of the US population comes to Tiktok to connect, create, share, learn or just have fun,” Chew said in Congress.

Just before his hearing, Tiktok flew in dozens of users and content creators from across the country, who together have 60 million followers. They held a rally on the steps of the Capitol, including many small business owners who make a living from Tiktok. “I challenge our politicians: don’t take away from us the community we’ve built,” shouted influencer Jason Linton, known as @dadlifejason, who is speaking on Tiktok about his experiences in foster care and about adoption.

In fact, some politicians have admitted in talks that they fear the public consequences of a Tiktok ban. After all, the audience consists mainly of younger people who are difficult to reach for politicians. According to Wallaroo Media marketing analysts, nearly two-thirds of Tiktok users in the US are under 30.

Biden’s government worked closely with Tiktok stars during the coronavirus pandemic to promote Covid vaccinations. Last year, the White House invited a handful of influencers to provide information on the Ukraine war.

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