Daily Management Review

White House Adviser Says Tiktok Can Function As A US Company


White House Adviser Says Tiktok Can Function As A US Company
The increased strained relations between United States and China has resulted in the Chinese short video messaging app TikTok finding itself in the crosshairs of the Trump administration.
While the owning company of the app has already exited the Hong Kong market just as Beijing implemented the new controversial national security law for the city, it is also being expected that TikTok will separate itself from its Chinese owner and operate as an American company. This was claimed by reports quoting a top White House adviser on Friday. The app is under fire and scrutiny of law makers in the US over concerns that the personal data of is millions of US users could be shared with the Chinese government thus making it a national security threat.
It would be a better option than the Trump administration banning the app in the US that TikTok leaves Beijing’s ByteDance Technology, its parent company, White House economic adviser Larry Kudlow told reporters.
Earlier this month, hints of the Trump administration thinking of banning the app was dropped by US secretary of State Mike Pompeo
“We haven’t made final decisions but … I think TikTok is going to pull out of the holding company which is China-run and operate as an independent American company,” Kudlow said.
It was not clear from the comments of Kudlow about whether under the new structure, the ownership pattern of TikTok would change. When asked about whether US companies could acquire TikTok, he declined to comment.
The company would not “engage with speculation in the market”, said a spokesman for TikTok when asked about Kudlow’s comments. He instead pointed out to a statement made last week by which said that ByteDance was “evaluating changes to the corporate structure of its TikTok business” and that the company was fully committed to protecting users privacy and security.
Relations between the US and China have been freshly strained in recent months over the novel coronavirus pandemic and the imposition of the controversial new national security law in Hong Kong. This has brought TikTok increasingly in the crosshairs of the Trump administration.
The Trump administration is currently evaluating the risks posed to US national security by social media applications including TikTok and WeChat, said US President Donald Trump’s chief of staff on Wednesday. The Trump administration is also contemplating actions to address the issue and an outcome can be expected in the coming weeks.
According to a report published by The New York Times on Wednesday, citing sources, the Trump administration was contemplating taking measures against Chinese social media services like TikTok under the International Emergency Economic Powers Act. This act gives broad powers to the US president to penalize companies in the case of extraordinary threats.