Spin off shares or get banned? What is the Biden administration trying to achieve with their threat against TikTok?

The Biden administration has threatened to ban TikTok from the United States unless its Chinese owners agree to spin off their share of the billion-user social media platform.  

The divesture request was confirmed to CNN by TikTok, that a US multiagency panel called Committee on Foreign Investment in the United States (CFIUS) had contacted the company. Responding to the threat, Maureen Shanahan, TikTok spokesperson, said “If protecting national security is the objective, divestment doesn’t solve the problem. Given the information that the US government has been raising anxiety over the risk of TikTok handing their users’ private information to Chinese government for espionage purposes. “A change in ownership would not impose any new restrictions on data flows or access. The best way to address concerns about national security is with the transparent, US-based protection of US user data and systems, with robust third-party monitoring, vetting, and verification, which we are already implementing, Ms. Shanahan added. 

 

Stating the data insecurity of TikTok towards US national security, however, the US government is claimed to have failed in producing evidence to prove the statement.

 


 

In the recent two years, Tiktok has been making attempts to get a deal that might allow it to continue operating in the US market—its biggest profit resource—in terms of data security and privacy concerns by negotiating with CFIUS. These negotiations have left both sides with nothing but criticism of the Biden administration by several US lawmakers who have pushed the ban on the app. TikTok has also made an effort to allay the fears of lawmakers with voluntary technical and bureaucratic safeguards, which the company claims will help ensure that US user data may only be accessed by US employees. Nevertheless, this effort is unfortunately futile towards US critics. In addition to the TikTok restriction on US government devices, some US lawmakers have attempted to enhance Biden's ability to impose a nationwide ban on TikTok. The plan was promptly embraced by the White House.

 

 



 

Back in 2020, the world was raising controversy when Donald Trump, the US’s former president, was determined on restricting TikTok’s operation in the US as he viewed the app as a threat to the nation’s security. Yet, all of his attempts were then revoked and replaced by Joe Biden, the US‘s recent president. It is surprising to know that the Biden administration is now reigniting the previous fire. What is their ultimate purpose? “It could be that the divestiture demand is the end of the discussion, but it’s also equally likely that the divestiture is a component of what CFIUS wants in terms of safeguarding national security,” Harry Broadman, a former CFIUS official, said. “Unless I’m in the room at CFIUS, it’s really hard to know where the discussions are, and frankly, what’s discussed in public does not often coincide with what’s going on around the table.”




Reference

Fung, B. (2023, March 16). Biden administration demands TikTok's Chinese owners spin off their share or face US ban | CNN business. CNN. Retrieved March 20, 2023, from https://edition.cnn.com/2023/03/15/tech/tiktok-cfius/index.html?fbclid=IwAR2LY2WEXAt90fEdosEGBZFyl8XpIgUht6CBvcCMQ7QQHnv1YfA9b2RdhOQ


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