As tensions escalate between the United States and China, it’s looking like the fate of TikTok’s U.S. operations will be decided in court. In January, in a unanimous decision, the Supreme Court upheld a law that requires ByteDance, TikTok’s Chinese parent company, to divest from the app’s U.S. operations. If they don’t, they will be subject to an effective ban. This ruling highlights the important factors of national security, use of American user data, and how these are misconstrued.
Former President Donald Trump’s administration famously engaged in deal-making with TikTok. He’s already used four consecutive executive orders to push back the deadlines for the app’s sale. As of last week’s developments, it looks like a possible agreement will keep TikTok up and running in the United States. In an effort to meet the regulatory agenda, sources say ByteDance could divide TikTok’s U.S. operations into two companies.
This impact is reflected in a new Pew Research survey that indicates a striking 39-point net shift. The share of adult Americans who turn to TikTok for news has exploded, jumping from only 3% in 2020 to 20% today. This staggering surge underscores TikTok’s growing power as an important news source. Its future will be vital to trade discussions writ large between Washington and Beijing.
Trump alleges that Xi Jinping greenlit an arrangement for TikTok during their almost two-hour-long phone call. The Chinese government has so far refused to publicly confirm any deal is in the works. That Chinese state media has been mum on the issue further adds to the confusion and uncertainty surrounding negotiations.
Indeed, Xi Jinping has become one of the loudest champions for free and fair trade everywhere. In particular he calls on the U.S. to refrain from imposing unilateral trade restrictions and create a more welcoming climate for Chinese investors. To take one recent example, a state-affiliated Weibo account extensively reported on the expulsion of a professor to Fudan University. He praised the deal with TikTok as a “win-win” for both nations.
The first deadline for TikTok’s sale had been January. Now, after Trump has extended the app’s closure multiple times, uncertainty is growing about the future of the most popular app ever. What makes this issue so urgent right now are the national security implications. U.S. officials have repeatedly warned that ByteDance’s ownership of TikTok jeopardizes sensitive user data, creating unacceptable national security risks.
And now that negotiations are underway, predictions from experts abound. They argue that any resolution needs to adhere to U.S. national security standards, but consider China’s legal structure. The stakes couldn’t be higher for either country. TikTok may be a fun social media app used by teenagers everywhere, but it’s an important player in the large, continuing trade debate.
“I would be happy to see productive commercial negotiations in keeping with market rules lead to a solution that complies with China’s laws and regulations and takes into account the interests of both sides.” – Xi Jinping