The US threatens to shut down TikTok if the Chinese owners do not sell shares

The US threatens to shut down TikTok if the Chinese owners do not sell shares

The Biden administration continues to attack TikTok and threatens to ban it in the United States if Chinese ownership does not relinquish control of the app. Since the days of Donald Trump, the Washington authorities have suspected it TikTok threatens American security Store data of young users who are passionate about his videos. There are about 100 million US citizens registered on the social network Which was launched in 2014 in China under the name Douyin.

Since then, the idea of ​​Beijing-based entertainment technology company ByteDance has taken the world by storm with its videos under the TikTok brand. The injunction for the Chinese owners to sell their US-based business unit comes from the Committee on Foreign Investment in the United States (CFIUS): a panel of federal agencies that assesses national security risks posed by foreign investments.

the Share the ByteDance packagethe parent company of TikTok, according to information conveyed by the property, 60% is in the hands of international investors, 20% by employees and 20% by its Chinese founders. However, the latter controls operations thanks to enhanced voting rights for its shares, which is a common practice in technology companies.

TikTok executives in the US say selling their app won’t fix it An alleged security problem American citizen. Securing big data to citizen consumers would simply change hands: “Forcing us to abstract will not lead to new controls and restrictions on data flows and access to their consultations,” say the Chinese managers.

For a few years now, TikTok has started a Plan of cooperation with the Washington authorities to secure the data. About $1.5 billion has been spent on “Project Texas,” a restructuring of corporate governance aimed at protecting information and content from potential influence from Beijing. Project Texas will work in partnership with the American Oracle Group. But according to the Information collected by Wall Street JournalCFius will return to the office withNotice of divestment. In 2020, the Trump administration’s offensive to force ByteDance to sell its TikTok business in the US failed while threatening to ban the app if it remained in Chinese hands. A US court banned the maneuver.

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The genius behind ByteDance and its app that has attracted hundreds of millions of young people around the world is Zhang Yiming, a graduate in microelectronics, an algorithm and artificial intelligence genius, designed half of its application technology by himself. In 2021, at the age of 38, he surprised everyone by announcing his resignation as Group CEO. “Sorry, I really don’t have the qualities of a CEO, in general I’m not a sociable type,” he wrote to 100,000 ByteDance employees. An implausible impulse framed in the mighty grip of the party-state and the party in Beijing on Chinese capitalism and in particular on the big tech giants. However, Zhang continues to exert influence over the company.

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