TikTok CEO loses favor with US Congress.

TikTok argues 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 House Energy and Commerce Committee following a series of proposals from Congress and the Biden administration to ban TikTok. Previously, the US government had demanded that TikTok's parent company in China divest its shares. Otherwise, the app risks being banned from operating 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 scenario,” said Committee Chair Cathy McMorris-Rodgers in her opening remarks at the meeting.

TikTok explains

Also present at the meeting on March 23rd were TikTokers who are small business owners making a living from this short-video platform. However, Ms. Rodgers argued that TikTok's widespread popularity with over 150 million Americans is the reason why it is considered a danger.

The chair of the House Energy and Commerce Committee demanded that CEO Shou Chew explain the truth about TikTok to the committee and provide reasons why TikTok should not be banned in the United States. "We will not acquire TikTok," the congresswoman stated.

On TikTok's side, CEO Shou Chew appeared to have prepared for any accusations from the US government. In his opening statement, he asserted that TikTok operates completely independently of ByteDance. "We are the only company that is transparent about data to this extent," the CEO said.

CEO Shou Chew during a hearing. Photo: Bloomberg

Mr. Chew also called the allegations made by the US government untrue, and stated that TikTok is still in discussions and cooperating with the government. "I haven't seen any evidence to substantiate these allegations. I'm waiting for the discussion session so they can present their evidence and we can address the concerns," Sou Chew said.

He stressed that the social media platform's efforts to protect data would continue. "TikTok has never shared or received requests to share U.S. user data from the Chinese government. We would never agree if such a request were made," Shou Chew said at the hearing.

The CEO of TikTok stated that 60% of ByteDance's shares are owned by foreign investors, 20% by employees, and the remaining 20% ​​by Chairman Zhang Yiming. He also stated that TikTok is strengthening measures to protect the safety of children and young users by verifying age and tightening regulations regarding children.

TikTok's dilemma: being caught between the US and China.

According toThe Verge,Only a handful of members of the U.S. Congress agreed with the TikTok CEO's rebuttal. "These tools are very powerful. I'm not saying they're going to do something harmful right now. But are we going to wait until China makes a move before we address it?" said Congressman Mark Warner.

Although there is no conclusive evidence that TikTok is endangering national security, the social media platform's bad reputation persists. Numerous reports have indicated 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 by its employees.

However, at the March 23 hearing, Shou Chew stated that many American companies have made similar mistakes in disregarding user privacy and security. "Just look at Facebook and the Cambridge Analytica scandal as examples," the TikTok CEO said.

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

On the Chinese side, the country strongly opposes the US demand that ByteDance divest its TikTok stake. “Forcing TikTok to separate from its parent company in China will affect the confidence of investors worldwide, including in China and the US. Therefore, China strongly opposes this demand,” said the Chinese Minister of Commerce.

He argued that any move to buy or divest TikTok would involve China's "technology transfer" regulations, in which case the government would intervene.

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

TikTok is no exception and is required to send its algorithmic data to the internet regulatory authority in China.

According toFinancial TimesFor many years, TikTok has consistently asserted itself as an international corporation with minimal ties to China. “China cannot possibly accept the demands made by the US, even for its parent company ByteDance; it is a very difficult decision. If a reconciliation cannot be reached, both sides will suffer losses, similar to the escalating US-China trade war,” commented Li Chengdong, Director of Technology at the Haitun Research Institute.