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China Fights U.S Demand For TikTok Sale

By Nithya Bose in Business News, posted March 15, 2024

The Chinese government has signaled its disapproval over the forced sale of TikTok in the US, creating a difficult situation for its owner ByteDance.

Officials in China are not happy over the US government's actions against TikTok.

They have hinted to ByteDance that they would prefer to see TikTok banned in the US rather than sold off.

The US lawmakers argue the app's data collection practices pose a national security threat.

This is due to the potential for user data to be shared with the Chinese government.

However, TikTok denies the claim.

The situation escalated with the US House of Representatives passing a bill requiring ByteDance to divest TikTok's US operations or face a ban.

The bill is now headed to the Senate.

It faces uncertain prospects, though President Biden has indicated he would sign it into law if passed.

ByteDance finds the situation challenging as it navigates geopolitical tensions without showing signs of engaging in discussions to sell TikTok.

Meanwhile, potential buyers, including former Treasury Secretary Steven Mnuchin and ex-Activision CEO Bobby Kotick, have expressed interest.

A Chinese Ministry of Commerce spokesman has called on the US to cease its "unreasonable suppression" of TikTok.

TikTok has 170 million U.S users

He said: “The relevant party should strictly abide by Chinese laws and regulations.”

ByteDance executives see this as a warning the company would face major obstacles from the Chinese government if it attempted to sell TikTok.

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ByteDance is in a dilemma where it must navigate ways to maintain TikTok's presence in its largest market, the US, where it boasts 170 million users.

TikTok's ongoing struggles include efforts to implement a data protection initiative, Project Texas, to alleviate concerns over American user data.

China views the app's global success as a symbol of the country's technological and cultural influence, sparking a mix of national pride and defiance against US pressure.

Amid these tensions, TikTok's future in the US remains uncertain, with the app caught in the crossfire of broader geopolitical disputes between the US and China.

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