Is China yielding to U.S. pressure to divest its social media powerhouse?
Even before President-elect Donald Trump takes office on Jan. 20, the next phase of the trade war between the United States and China may have already begun. On Jan. 19, the Chinese-owned social media platform must either be sold to an American company or face a ban in the United States.
If the latter scenario unfolds, an estimated 150 million to 170 million active users in the United States will lose access to the popular platform, which boasts over 1 billion active users globally. This would compel companies like Apple and Google, as well as internet hosting providers, to cease supporting TikTok, thereby cutting off users’ access to the app in the U.S.
The source of this potential ban is the Protecting Americans from Foreign Adversary Controlled Applications Act, signed into law by President Joe Biden last April with bipartisan support from Congress. This law highlights national security concerns over the Chinese government accessing personal data of American TikTok users for strategic purposes and spreading propaganda that could jeopardize U.S. security.
Solicitor General Elizabeth Prelogar emphasized that the law aims to counter the threats posed by the Chinese government’s control of TikTok, which collects sensitive data about millions of Americans, potentially enabling covert influence operations by a foreign adversary. TikTok’s response to the law, which was rejected by the U.S. Court of Appeals, decried it as an act of censorship against the American people.
The potential sale or ban of TikTok could trigger repercussions, with China possibly retaliating against the U.S. in various ways. This could include denying American companies access to the Chinese market, which could impact several U.S. tech brands. Given China’s economic challenges and the specter of Trump’s America First agenda, Beijing is unlikely to allow a major company to be ousted from the U.S. market without consequences.
The Chinese Communist Party has a range of retaliatory options at its disposal, which could adversely affect U.S. companies operating in China. The possibility of punitive measures against American firms like Tesla, Apple, or other tech companies remains a credible threat. The Chinese regime has previously barred American social media platforms from entering the Chinese market, indicating a history of using market access as a tool for retaliation.
Moreover, China has linked the TikTok ban with U.S. arms sales to Taiwan, framing it as an assault on its sovereignty and economic interests. The Chinese response to the law’s passage underscores the sensitivity and potential consequences of actions taken by the U.S. against Chinese entities.
Ironically, it may be the incoming Trump administration that ultimately saves TikTok, as President Trump has sought to delay the ban through legal channels to explore potential political resolutions. This reversal in approach reflects the complex dynamics at play between the U.S. and China in the realm of technology and national security concerns. It is possible that the reason for President Trump’s change of mind regarding TikTok’s future in the United States could be linked to billionaire Jeff Yass, a major donor to his 2024 presidential campaign. Yass owns a significant stake in ByteDance, TikTok’s Chinese parent company, through his trading company, Susquehanna International Group. This financial interest may have influenced Trump’s decision, or he may be using TikTok as a bargaining chip in trade negotiations with China. The Supreme Court’s decision to review the case just days before the forced sale deadline adds another layer of suspense to the ongoing TikTok drama. Please note that the opinions expressed in this article are those of the author and not necessarily reflective of The Epoch Times.
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