TikTok boss loses points before US Congress

TikTok believes that divestment is not an effective solution if the US government wants to ensure national security. Photo: AP

On March 23 (US time), TikTok CEO Shou Chew testified before the US Energy and Commerce Committee following a series of proposals to ban TikTok from Congress and the Biden administration. Previously, the US government had asked TikTok's parent company in China to divest its shares. Otherwise, the application risks being banned in the US.

“You are here because Americans need to hear the truth about the risks TikTok poses to our mental health and national security. Your platform will be blocked in the United States. I hope you will take steps to avoid this worst-case outcome,” Committee Chairwoman Cathy McMorris-Rodgers said at the start of the meeting.

TikTok explains

Also present at the March 23 meeting were TikTokers who are small businesses that make money off of the short-form video platform. However, Ms. Rodgers said that TikTok’s widespread popularity with more than 150 million Americans is the reason why it is considered a danger.

The chairwoman of the US House Energy and Commerce Committee asked CEO Shou Chew to explain the truth about TikTok to the Committee and give reasons why TikTok should not be banned in the US. "We will not buy TikTok," the congresswoman affirmed.

As for TikTok, CEO Shou Chew seems to have prepared for any accusations from the US government. In his opening remarks, he asserted that TikTok operates completely independently from ByteDance. “We are the only company that is this transparent about data,” the CEO said.

CEO Shou Chew at the hearing. Photo: Bloomberg

Mr. Chew also called the allegations made by the US government untrue, and said TikTok is still in the process of discussing and cooperating with the government. “I have not seen any evidence to prove this allegation. I am waiting for the discussion so that they can present evidence and we can address the concerns around it,” Sou Chew said.

He stressed that the social media platform’s efforts to protect data will continue. “TikTok has never shared or received a request from the Chinese government to share U.S. user data. We would never agree to such a request,” Shou Chew said at the hearing.

TikTok CEO said that up to 60% of ByteDance's shares are owned by foreign investors, 20% by employees, and the remaining 20% ​​by Chairman Zhang Yiming. At the same time, he said that TikTok is stepping up measures to protect the safety of children and young users by verifying their age and tightening regulations on children.

TikTok's dilemma when caught between the US and China

According toThe Verge,Only a few members of Congress agreed with TikTok CEO’s rebuttal. “These tools are powerful. I’m not saying they’re going to do anything harmful right now. But we’re not going to wait for China to do something about it,” said Congressman Mark Warner.

While there is no conclusive evidence that TikTok poses a national security risk, the social network’s reputation continues to suffer. Multiple reports have shown that employees of its parent company ByteDance in China had unauthorized access to US user data, including the IP addresses of journalists. TikTok acknowledged the incident and apologized for the abuse of power.

However, at the March 23 hearing, Shou Chew said that many American companies have made similar mistakes in not respecting users' privacy and security. "Just look at Facebook and the Cambridge Analytica scandal as an example," said the TikTok CEO.

The administration of former President Donald Trump tried to ban social media in 2020 but failed. Photo: Alinea

On the Chinese side, the country strongly opposes the US request for ByteDance to divest its TikTok shares. “Forcing TikTok to separate from its parent company in China will affect the confidence of investors around the world, including China and the US. Therefore, China strongly opposes this request,” the Chinese Minister of Commerce shared.

He believes that any move to buy or divest TikTok would be related to China's "technology transfer" regulations, which would involve the government.

Earlier, when former President Donald Trump's executive order forcing TikTok to sell itself was revoked, China responded by updating its list of technologies banned or restricted from being exported from the country, including "personalized recommendation technology" and "artificial intelligence interaction".

TikTok is no exception and must send algorithmic data to China's Internet watchdog.

According toFinancial TimesFor many years, TikTok has always asserted that it is an international corporation with little involvement with China. "China cannot possibly accept the US's request, even for parent company ByteDance, it is a very difficult decision. If there is no reconciliation, both sides will suffer, similar to the escalating US-China trade war," said Li Chengdong, CTO of Haitun Research Institute.

Thuy Lien