ByteDance, that it may face a ban in the country if its Chinese stake is not sold. The government accuses TikTok of posing a national security risk due to data gathered from millions of users. The Committee on Foreign Investments in the United States (CFIUS) has reportedly recommended ByteDance to divest from TikTok. However, a TikTok spokesperson argued that a change in ownership would not solve the problem, instead suggesting that transparent, US-based protection of user data would be a better solution.
US officials have long been concerned that TikTok’s data could fall into the hands of the Chinese government. TikTok collects vast amounts of user data, similar to Instagram and Twitter, which could potentially be shared with the Chinese government. In response, TikTok has initiated Project Texas to move all US-based data to the United States.
New legislation called the Restrict Act was recently unveiled in the US Senate, which could give the president the authority to ban TikTok nationwide. TikTok is currently banned on government phones in the US, Canada, and the EU. TikTok’s CEO, Shou Zi Chew, is scheduled to testify before the US Congress next week in a highly anticipated event.