![]() However, TikTok released a statement saying that the China-based subsidiary of ByteDance in which the Chinese government owns a stake does not have any ownership of TikTok, only Chinese apps. In the United States, officials are concerned that TikTok’s indirect connection to the Chinese government could put user data at risk. ![]() Some of the largest tech companies in China include Alibaba and Tencent, which provide a wide range of services from e-commerce and payments to gaming and social media for hundreds of millions of Chinese people. They also introduced new draft rules to strengthen data security and prohibit companies from engaging in antitrust violations after rapid, unprecedented growth in the tech industry. In response to these issues, the Chinese government cracked down by taking greater stakes in these private companies, which could make it difficult for Chinese firms to do business overseas.īeijing has also launched investigations into some of the biggest internet companies in China, tanking share prices across industries, with some stocks falling more than 90 percent. It is not unusual for the Chinese government to hold shares in tech firms, but this news accompanies a recent increase in antitrust probes and growing concerns that private technology companies are gaining too much data without being checked. “We must also establish a framework of standards that must be met before a high-risk, foreign-based app is allowed to operate on American telecommunication networks and devices.” Too Much Data, Not Enough Control needs to treat it that way,” Rubio said in a statement. “Beijing’s aggressiveness makes clear that the regime sees TikTok as an extension of the party-state, and the U.S. Republican Senator Marco Rubio recently released a statement urging Biden to block TikTok in the U.S. With only three board seats available, this move suggests that the government has gained a greater level of influence at this subsidiary than just a small equity stake would suggest. ![]() In fact, in August The Information reported that the Chinese government quietly took a 1 percent stake and a board seat in a key subsidiary of ByteDance in April of this year. Though President Joe Biden signed an executive order revoking Trump’s order to ban the app less than a year later, these security concerns haven’t gone away. President Donald Trump signed an executive order banning TikTok in the United States, unless ByteDance, the Chinese parent company that owns TikTok, divested ownership or an American company purchased the app.Īt the time, the Trump administration expressed national security concerns because TikTok was owned by a Chinese company, although TikTok has repeatedly denied claims that they have shared user data with Beijing. There has been much speculation about the security of TikTok, a video sharing social media app that exploded in popularity in 2020.
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