TikTok, a video-sharing app could be sold to American investors to remove US ban. White House official said on Thursday, “TikTok is pulling itself out of its Chinese holding company and operating as an independent American company is a much better solution than banning,”
The reports are coming as TikTok is going to pull out of the holding organization, which is China, and work as an autonomous American organization, White House Economic Advisor Larry Kudlow told correspondents here.
TikTok has been attempting to separate itself from its Beijing-based owner for months.
Economic Advisor Larry Kudlow has been asked whether any American company would like to buy the Chinese firm, he said “I don’t want to speculate on that.That’s really a market question, but I’m just saying that’s a much better solution than banning,” he further said.
He also claimed that TikTok servers would be in the US not in china if TikTok becomes an American company
White House Statement to ban TikTok
A day earlier, the White House revealed that a decision on Chinese banning apps including TikTok could be taken within weeks.
White House Chief of Staff Mark Meadows also said I do not think there is any self-imposed deadline for action, but I think we are looking at weeks, not months,”
“There are some administration officials who are looking at the national security risk as it relates to TikTok, WeChat and other apps that have the potential for national security exposure, specifically as it relates to the gathering of information on American citizens by a foreign adversary,” he added
The reports come as TikTok faces increased investigation in Washington for security reasons of its citizens. Tensions between the United States and China have been moving as the two forces fight over the exchange, innovation, national security and human rights. ByteDance offers a fundamentally the same as an application called Douyin, with a similar logo and marking as TikTok, in China. As per the FT, it would hold a minority stake in TikTok under the arrangement being examined.
ByteDance to sell TikTok is the only major social media app created by a Chinese company to gain significant traction globally and that would be a big move. And it still might not be enough to alleviate concerns in Washington.
US officials accuse TikTok many times for a national security threat because it could be used as a spying tool by Beijing. TikTok has condemned and denied all allegations that are given by lawmakers and US officials
Paul Triolo, head of global tech policy at Eurasia Group said. “It does not seem likely that US investors alone buying a majority ownership stake would satisfy CFIUS or broader US government concerns about the Chinese ownership piece and the potential for US personal data to find its way back to Beijing,”