
For the third time in just over a century, the US is, once again, in the grip of a full-blown Red Scare. The home of the “communist threat” may have changed — China rather than the Soviet Union — but the elements are all there: moral panic, paranoia, authoritarianism, repression. This became apparent earlier this month, when Democrats and Republicans, in a rare show of national unity, joined forces to confront one of the gravest threats facing America today. No, not rampant crime, not illegal immigration, not falling living standards — but TikTok.
On March 13, with a resounding majority, the House of Representatives passed a bill calling for a nationwide ban against the hugely popular social media app, used by roughly 170 million Americans. If the bill, which has the White House’s support, is approved by the Senate, TikTok’s parent company, Beijing-based ByteDance, will be forced to sell the social media platform to a US-based company or stop operating in the country.
The US lawmakers’ main claim is that TikTok represents a national security threat due to its ties to the Chinese government, which they fear may use the app to access American user data. In this, Beijing’s critics are in good company: just yesterday, the UK and the US accused China of launching a “prolific” campaign of cyberattacks against the West.
It’s worth noting, however, that neither US intelligence nor the bill’s sponsors have produced any evidence that TikTok has ever coordinated with the Chinese government. In interviews and testimony to Congress about the app, leaders of the FBI, CIA and the director of national intelligence have in fact been careful to qualify the national security threat posed by TikTok as purely hypothetical. Indeed, when cybersecurity officials in Connecticut asked the FBI for advice on whether to ban the app on government devices, they were informed that similar bans introduced in other states appeared to be based “on news reports and other open-source information about China in general, not specific to TikTok”.
Upon closer inspection, the US lawmakers’ case looks rather weak. For starters, is TikTok even really a “Chinese app”? The app is owned by TikTok LLC, a limited liability company incorporated in Delaware and based in Culver City, California. The LLC is in turn controlled by TikTok Ltd, which is registered in the Cayman Islands and based both in Los Angeles and Singapore. As it happens, TikTok doesn’t even exist in China, where they use a different version: a sister app called Douyin.
TikTok Ltd, in turn, is owned by ByteDance, which is also incorporated in the Cayman Islands and headquartered in Beijing. But how Chinese is ByteDance itself? Sure, the company was founded in 2012 by Chinese entrepreneurs, and it operates many businesses in China — but roughly 60% of the company is owned by international investors, most of them American, with the remaining shares divided among its founders and Chinese investors (20%) and the company’s own employees (20%), including more than 8,000 Americans. Moreover, ByteDance’s board of directors is comprised of five individuals — three Americans and two Chinese — while the company’s CEO is Singaporean.
As for the Chinese government itself, it owns a 1% stake in ByteDance’s main domestic subsidiary — a legal requirement for all news and information platforms operating in China — and a government official who used to work for China’s internet regulator sits on the subsidiary’s board. This is hardly surprising: everyone knows the internet is heavily censored and controlled in China, and ByteDance’s domestic version of TikTok, Douyin, is no exception. The question is whether the same applies to ByteDance’s global operations outside of China, including TikTok.
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