- greensea
- 17 Jan 2025 01:59 AM
- Global News
TikTok's Current Predicament
TikTok, owned by Chinese company ByteDance, faces a U.S. ban unless its American operations are sold to a non-Chinese buyer by Sunday. This is mandated by a law passed in April 2024, citing national security concerns.
ByteDance’s ownership structure includes 60% institutional investors (like BlackRock and General Atlantic) and 20% ownership by its founders and employees.
Push for Deadline Extension
Several lawmakers, including Senate Majority Leader Chuck Schumer, are advocating for an extension of the divestiture deadline. Schumer has proposed adding 90 days to the process, citing the need to prevent disruption for TikTok’s 170 million U.S. users.
Schumer emphasized the importance of finding a solution that balances security concerns with the livelihoods of Americans reliant on the app.
Trump Administration’s Shifting Stance
Former President Donald Trump initially supported a ban on TikTok, citing concerns about its potential use by the Chinese government to gather data or spread propaganda.
However, Trump has since softened his position. His incoming national security adviser, Mike Waltz, stated that the administration wants to keep TikTok operational if a viable sale is close.
Trump is also reportedly considering an executive order to allow TikTok to continue operating temporarily while ByteDance finalizes a sale.
Supreme Court’s Role
The U.S. Supreme Court is deliberating whether to uphold the divestiture law, overturn it, or grant more time for review. A decision could come as early as Friday.
The court’s ruling will determine whether TikTok faces an immediate shutdown on Sunday or receives a temporary reprieve.
TikTok’s Contingency Plans
Without a formal extension or court intervention, TikTok is preparing to shut down its U.S. operations on Sunday, according to sources close to the company.
Political Reactions
Support for TikTok: Some lawmakers see the app as vital to millions of Americans and argue for a balanced approach.
Opposition: Others, including Representative Frank Pallone, criticize TikTok’s ties to China, calling it a national security risk. Pallone expressed concern over Trump inviting TikTok CEO Shou Zi Chew to his presidential inauguration.
Bipartisan Divide: The issue has created a divide within both parties, with some Republicans and Democrats supporting TikTok’s survival while others remain wary of Chinese influence.
Impact on Social Media Landscape
Anticipation of a ban has prompted users to explore alternatives, with Chinese social media app RedNote gaining 3 million U.S. users in one day.
TikTok's shutdown could disrupt the livelihoods of its creators and businesses that depend on the platform.
Broader Implications
ByteDance faces intense scrutiny as its U.S. operations employ over 7,000 workers. The company did not comment on the situation.
A prolonged stalemate could strain U.S.-China relations, further complicating negotiations over the app’s future.
TikTok’s fate remains uncertain, hinging on court rulings, political negotiations, and the possibility of a last-minute sale. Lawmakers and stakeholders are under pressure to address national security concerns while minimizing disruption to millions of users. The next few days will be pivotal for the platform’s future in the United States.
